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.

MOB Atlanta Market Report - Year End 2010

Metro Atlanta - Atlanta’s specialty use Medical Office Building (MOB) market totals approximately 18.8 million square feet.  There are some 495 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, however, could be several million square feet; a fraction of the total amount of vacant retail and primary use office space in Metro Atlanta

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.