Understanding the MOB Business

"Pill Hill" - Atlanta, Georgia

Leasing medical office space requires an expert in the field of health care real estate. The healthcare industry is complex and operates in a heavily regulated business environment which also effects real estate decisions.  Working with physicians in leasing medical office space offers its own unique challenges.  Typically a quality tenant for medical office space will enhance the existing referral matrix, sign a long-term lease, has good credit, and a growing patient base.

MOB Atlanta Market Report - Mid Year 2011

Metro Atlanta – Atlanta’s specialty use Medical Office Building (MOB) market, totaling approximately 19.1 million square feet, is not immune to the economic factors adversely affecting other sectors of the commercial real estate industry.  With over 3.57 million square feet of vacant space and nearly 120,000 additional square feet available in sublease space, vacancy rates of 18.7 percent are at record levels.  There are some 512 multi and single tenant medical office buildings that are generally over 9,500 square feet in ten primary submarkets. Non-primary use medical office buildings including traditional office buildings, business parks and retail space are not included in our analysis.  While accommodating some medical uses, these properties do not provide the referral basis and services of a professionally run medical building.  This pseudo market could be several million square feet; a fraction of the total amount of vacant retail and primary use office space in Metro Atlanta.

MOB Johnson Ferry Market Report - 1Q2011

The Johnson Ferry medical submarket in Cobb County, Georgia is centrally located around the intersection of Johnson Ferry Road -a primary north/south artery, and State Route 120 that connects east to the City of Roswell and west to the City of Marietta. There are 11 medical office buildings (MOBs) with a total of 243,517 square feet in this suburban submarket of which Woodlawn Commons accounts for 74,032 square feet- 30% of the submarket.  One interesting dynamic in this submarket is the marketing of traditional office space which houses a blend of medical and non medical tenants but does compete for medical tenants.  This pseudo market accounts for approximately 1.2 million square feet in 131 buildings of which 215,000 square feet are vacant. 

MOB Woodstock Market Report - 1Q2011

Metro Atlanta - The Woodstock medical submarket is located centrally around the intersection of I-575/Canton Road corridor and Hwy 92 in north Cobb and Cherokee County, Georgia.   There are 21 medical office buildings (MOBs) with a total of 537,274 square feet in this suburban submarket – part of the larger Northwest Atlanta submarket with 99 MOBs totaling 3.6 million square feet.   The nearest hospitals are Northside Hospital-Cherokee (84 certified beds), approximately 12 miles north and Wellstar Kennestone Hospital (633 certified beds), approximately 12 miles south.

MOB Decatur Market Report – 1Q2011

Metro Atlanta - The Decatur medical office building (MOB) is a mature submarket located around the Dekalb Medical North Decatur Campus and Decatur Hospital in downtown Decatur.  There is approximately 926,836 square feet in 24 buildings—the most recent delivered in 1995.  Four of the MOBs are on campus of the two hospitals with the remaining within walking distance.  Decatur is a unique pedestrian friendly market that experienced occupancy rates over 90% for the past four years. One interesting note, not unique to this submarket, is the marketing of nontraditional medical buildings to health care providers who do not require the inherent referral basis of a typical MOB.

BEST of MOBATL - Center Pointe

Center Pointe
1100 & 1150 Johnson Ferry Rd
Atlanta, Georgia  30342

Central Perimeter

Located on “Pill Hill” Center Pointe is a 348,741 square foot, two building project renovated and converted to medical in 2010.  Building One at 6 stories totals 134,243 square feet.  Building Two at 10 stories totals 214,498 square feet.  The lower lobby, 1st, 2nd and 3rd floors are connected creating large floor plates.  The lobby and common areas received $500,000 in renovation improvements including new carpet, furniture, upgraded conference facility, and new tenant and building signage.  There is easy access to Georgia 400 and I-285 and only 1/10 of a mile to the Medical Center MARTA station.  The MOB has covered parking, health club with new state-of-the-art athletic equipment, cafe, and building conference facility.