We continue our journey in the growing Atlanta metro
In Metro Atlanta existing practices are expanding, as evidenced by YoY vacancy for Medical office building (MOB) tracked set, dropping materially from 14.1% to 11.7% in the first quarter of 2018.
The past two quarters alone have experienced 474,843 square feet (sf) of positive absorption. Further, while CoStar reports the market’s overall asking rental rates are a modest$22.83 per square foot (psf), strong absorption occurring in new MOB product confirms owners are achieving gross rates in the $36 to $42 psf range. Augmenting the traditional MOB tenant is the trend of new-to-market healthcare providers placing themselves in front of the consumers in non-MOB locales such as strip-centers, standalone buildings, and other retail-like settings where the full occupancy costs can exceed $50 psf.
1. Expanding Practices
Vacancy dropped from 14.1% to 11.7% in 2018Q1 due to existing medical offices expanding
2. Northlake on top
Northlake submarket leading in leasing activity with over 50,000 SF of leases signed.
3. New Trend / Rent Growth
There is a new trend of new-to-market healthcare providers placing themselves in front of the consumers in retail-like settings where the full occupancy costs can exceed $50 psf
4. Booming Construction
There are currently 41 active projects in the Atlanta market over 20,000 SF. 2.4MSF proposed and 520,000 SF under construction.
5. Strong Absorption
Another quarter of high absorption for 2018Q1 (318K) which makes it the 6th consecutive for postive absorption.
Let’s Work Together
Healthcare real estate investment is a growing business that generates premium yields due to the stability and predictability of the cash flows. We can get you started.