Medical Office Stays Strong In Major Healthcare Metros: 16% More Space Projected In Next Decade

Driven by an aging US population, the amount of medical office space needed in the next decade is projected to be 16% more than today based on current trends, according to a report by CoStar.

That’s greater than the combined medical office space in New York, Los Angeles, Chicago and Dallas–Fort Worth, the nation’s four largest medical office markets.

This 22,654-square-foot medical office building is located at 9500 North Central Expressway.

Following this healthcare growth pattern, a 22,654-square-foot medical office building located at 9500 North Central Expressway currently houses DaVita Central Dallas Dialysis. Robert Lynn Investments recently purchased the asset and has a new long-term agreement with a national surgical company to anchor the building.

Robert Lynn Investments will develop the new space and expects it to be operational in the first quarter of 2020. The investment division of NAI Robert Lynn was opportunistic in purchasing the off-market value-add opportunity, which is consistent with its portfolio strategy.

NAI Robert Lynn brokers Nick Lee and Justin Utay sourced the building purchase and presented it to Robert Hoodis, Robert Lynn Investments managing partner. Lee and Utay also handled lease negotiations with the new tenant.

“This was a highly collaborative venture between Robert Lynn Investments and NAI Robert Lynn that enabled us to customize a solution to truly meet the client’s needs,” said Hoodis. “As an investment company, we benefit tremendously by accessing NAI Robert Lynn’s brokers’ submarket expertise. It’s a relationship that not only helps us source off-market deals, but often negotiate them to a better outcome for our clients and tenants. In this case, our team of Robert Lynn Investments and NAI Robert Lynn discovered a desirable new location that enables us to better serve our client with great benefits.”

The building spans 22,654 square feet, with the new tenant space to take up approximately 12,037 square feet. The remaining usable space, approximately 8,200 square feet, is occupied by DaVita.

The building includes covered parking for patients and is optimized for patient flow. The location is a short distance from Texas Health Presbyterian Hospital, numerous medical offices and major highways.

“The 9500 N. Central project fits perfectly within Robert Lynn Investment’s portfolio strategy, which includes medical office buildings, surgical hospitals and surgery centers throughout the country,” Hoodis tells GlobeSt.com. “While we have built our portfolio primarily through acquisition, we have seen a recent increase in development opportunities. We consider the 9500 N. Central property a hybrid opportunity as an acquisition that includes a significant development component. The scope of this project requires us to take shell space and develop it into a full surgery center. In addition to 9500, we are currently working on several development projects, including the expansion of an existing surgery center and a large ground-up medical office project.”

 

Source: GlobeSt.