Changing economic conditions and rising rates have dramatically impacted the Medical Office Building (MOB) real estate market.
Leasing in MOBs has increased approximately 2.9% on average over the past two years as a result of the high cost of building new MOBs, which has effectively reduced the market supply/availability. Increases in leasing rates are expected to continue because of the lack of market supply, higher costs of tenant improvement, and higher property operating costs. Some sources are predicting that leasing asking rates could increase between 2%-4% in late 2023.
Given these current rates and forecasts in market real estate conditions, many physicians will likely remain in their current office spaces, at least for now, to try and keep costs down.
CAP members could be realizing additional savings on their current leases or new property agreements. Gary Pepp with Physicians Commercial Real Estate Services can work on your behalf at no cost to find that needed relocation property or to negotiate with your current landlord for the best lease terms.
With Gary, you get:
- A dedicated broker who specializes in medical office real estate and understands its nuances and complexities.
- Tenant-only representation, so there is no conflict of interest with landlords.
- Attention to the fine print to negotiate the optimal deal.
Plus, CAP members will receive 10% of the earned commissions from Physicians Commercial Real Estate Services at the close of contract.
To get started and for more information, contact Gary Pepp at 562-743-1695 or at gpepp@physicianscommercialre.com.