Samply Survey - North Central Medical Market

Metro Atlanta – A sample survey of MOBs in the North Central Market indicates that for a medical group needed approximately 3,000 square feet there are 51 suites available in 13 buildings that are greater than 45,000 square feet. Larger MOBs afford greater amenities including upgraded lobby and common areas, covered and valet parking, and superior access. These 13 MOBs total 1.54 million square feet and at a 20% vacancy rate is an indication of a concessionary submarket. Rental rates range from $24.00 to $33.00 per square foot net of TICAM which could add an additional $10.00 per square foot to the overall rental rate.

MOB Report Mid Year 2010 Investments Trends

The Mid Year 2010 REAL Capital Report on Medical Office Buildings indicates positive changes for investors of healthcare real estate. The national average price per square foot for Medical Office Buildings (MOB) has risen by $13.00 per square foot to over $224.40 per square foot over year end 2009. However, prices are still well below the historical highs of over $275.00 per square foot in 2007. As comparison the Southeast average is $177.00 per square foot with highest being $323.00 per square foot in the West Region. There is no data recorded for the Atlanta MOB market.

MOB Atlanta Market Report - Mid Year 2010

Metro Atlanta - Medical office space in Metro Atlanta has been negatively impacted by the recent economic downtown.  In real estate terms net absorption is one indicator of the overall health of a market.  Overall absorption, the net difference in the amount of space occupied between quarters has been negative in four of the past six quarters.  During the 2nd quarter of 2010 the market had a net negative absorption of -174,351 square feet, the largest drop in overall occupied space recorded.  Northwest Atlanta and the Central Perimeter markets had the largest net negative losses at -70,572 and -36,155 square feet each.  We see this as correction in the market that will start to turn positive by year’s end.

BEST of MOBATL - Wahoo Creek Professional Park

Wahoo Creek Professional Park

Millard Farmer Industrial Blvd

Newnan, Georgia 30263

South Atlanta Submarket

Newnan’s newest medical office building development is strategically located along the State Route 34 Bypass connecting the existing Piedmont Newnan Hospital, the new Cancer Treatment Center of America site and the anticipated new Piedmont Newnan Hospital. Initial plans include two 45,000 square foot, 2 story Class A medical office buildings, with high grade common areas, covered drop off area and reserved physician parking. The first building is projected to be delivered in forth quarter of 2010 with ownership and equity position available.

Demand vs. Supply Executive Summary

Ambulatory Strategy:

The future of healthcare is ambulatory care, as most health systems are preparing for a shift in the delivery of care, to 80% outpatient/20% inpatient in next 20 years. Enrollment in the Medicare Program is projected to nearly double between 2000 and 2030 and by 2015, approximately 150 million Americans will have at least one chronic condition. These statistics will drastically change how our healthcare models are structured.

BEST of MOBATL - Piedmont West

Piedmont West

1800 Howell Mill Road

Atlanta, Georgia 30318

I-75 North Corridor

Piedmont West Medical Office Park is a multi phased mixed-use development on 7.3 acres at the corner of Howell Mill Road and I-75. The first phase includes a 264,000 square foot class A medical office building, 4,000 square feet of retail with 4/1000 covered parking spaces (valet parking will also be provided in the future). Plans for Phase II include another 150,000 square feet of office space and additional upscale amenities.

Demand vs. Supply Executive Summary

Stark III: Revisions and Implications

Originally passed in 1992, “STARK” prohibits physicians from referring Medicare/Medicaid patients to clinical labs in which physician (or a family member) has a financial interest. STARK has since undergone a number of revisions and expansions. These regulations affect MOBs because real estate transactions (leases and/or ownership interests—debt or equity) constitute a financial interest.

MOB Report Year End 2009 Investment Trends

The Fourth Quarter 2009 REAL Capital Report on Medical Office Buildings reveals some interesting trends and backs up what has been reported for the past year.  For 2009 verses 2008 Medical Office Building (MOB) sales volume declined by 63%.  The average price per square foot was down by -6% however by some measurements up by 9%.  This compares to traditional office properties which were down by -71% in sales volume and down by a massive -26% in average prices per square foot.  The percent asking price to achieved price was approximately 89% for both type properties.

BEST of MOBATL - Governors Pavilion

Governors Pavilion

4450 Calibre Crossing
Acworth, Georgia 30101

Kennesaw/Town Center Submarket

Governors Pavilion is located in an explosive population growth corridor of N Cobb Pkwy. Located in walking distance to the proposed Wellstar-North Hospital. Close to Bentwater, Seven Hills & Governors Club. Cartersville Hospital to offer urgent care and imaging on 1st floor. Fast growing, affluent area with a need for doctors and dentists. Close to banks, day care, and an Eckerd's Drug. Drop off canopy access.

MOB Atlanta Market Report - Year End 2009

Metro Atlanta’s specialty use medical office building market totals approximately 17.457 million square feet in ten primary submarkets. Our research tracks medical office buildings, both multi and single tenant buildings that are generally over 10,000 square feet. 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 professional run medical building. Six submarkets account for 80% of the 457 medical office buildings, all areas around large regional medical centers. Four medical office buildings are currently under construction and expected to be completed by the first quarter of 2011 including the Meadows & Ohly development of Gwinnett Medical Center, a 127,000 square foot on campus medical office building.