The prospect of leasing to health systems is especially attractive to office and retail owners that experienced rising vacancy during the pandemic. While landlords are expressing more interest, it is often difficult to convert the space into medical use.
The 46-acre Hope Preserve project recently gained significant traction with a trio of recent land deals more than three years after Hope Hospice and Community Services Inc. unveiled its plans. Only five acres of of the project presently remain uncommitted.
Medical office has been the ‘steady Eddie’ through two recessions. In CBRE’s 2021 survey of healthcare real estate’s most influential REITs, institutional investors, private capital investors and developers, 80 percent of respondents said the sector is recession-proof, and data supports this view.
“The developers took an odd-shaped plot of land with a flood plain in the middle of it and created what is expected to be a world-class project,” said Mayor Jeff Cheney. “We’re sitting here today talking about potentially building a $1 billion development because of the halo effect of the PGA.”