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. 

The nearest hospitals Northside Hospital, St Josephs Hospital-Atlanta and Children’s Healthcare Atlanta-Scottish Rite are approximately 8.5 miles southeast- North Fulton Regional Hospital is approximately 10 miles northwest, and Wellstar Kennestone Hospital- is approximately 10 miles west.

Average quoted rental rates are at record highs of $19.43 per square foot and continue to climb. The lowest rates are quoted at $12.00 per square foot with the highest quoting $25.00 per square foot.  This submarket is typically a net market in terms of rental structure where tenants are charged separately for taxes, insurance, common area maintenance (TICAM) and operating expenses.  The pseudo market- non medical- has an average quoted rate of $15.75 per square foot plus expenses.

After several quarters of negative absorption– a net loss in the amount of space leased- the overall vacancy rates increase from 4.3% in 2007 to a record high of 17.0% in 2010.  Recent move-ins and positive absorption of over 8,000 square feet has pushed vacancy rates down to 13.7%  in the first quarter of 2011.The pseudo market by comparison has experience similar trends, however their overall vacancy rate is over 17.0%.

For a complete report of supporting data and/or request for a market study for areas not yet reported on this blog, please give us a call or email Richard Smith, CCIM.   We can also provide complete full market research studies including available spaces, lease rates, operating expenses, sales comparables and tenant rosters on medical office buildings across the Southeast Region.  We work with health care professionals evaluating real estate options