Report: Medical Office Market Sickly in 3rd Quarter

Report Medical Office Market Sickly in 3rd QuarterThe valley’s medical office market, like other real estate sectors, suffered in the third quarter from rising construction costs, a dampened economy and a glut of existing space, reports Commerce Real Estate Solutions, the local Cushman & Wakefield affiliate. Rising unemployment has also impacted medical office demand. Medical professionals are downsizing as workers loose benefits, which, in turn is causing high vacancies and low rents. But, there are early signs of stabilization with growth from the federal government, health care, energy and clean technology sectors, Commerce Real Estate Solutions said. One emerging trend is converting vacant retail centers into medical office space at a much more affordable rate. Should the trend continue, there may not be any new medical office construction for many years, said Commerce Real Estate Solutions. For the full report, CLICK HERE