Chicago Now Nation's Leading Medical Office Market
The Chicago region now has the most vibrant medical office sector in the U.S., and investment continues to pour in.
Chicago led the nation’s medical office sector with about 915K SF of net absorption in the year up to the end of Q2, with Atlanta coming in second at 557K SF, according to CBRE’s just-published 2019 U.S. Medical Office Trends report.
The Chicago region also came out on top when it came to construction activity. Developers added nearly 800K SF to the Chicago-area’s inventory, far outpacing second-place Dallas-Fort Worth, where less than 500K SF was built.
CBRE officials said they just closed the sale and financing to a confidential buyer of a nine-building national medical office portfolio totaling about 470K SF, including two properties in the Chicago area.
The portfolio includes the 95K SF Advocate Sherman Medical Building at 1435 North Randall Road in northwest suburban Elgin, and the 36K SF Oak Lawn Medical Building at 4301 West 95th St. in Oak Lawn.
“This portfolio offered the opportunity to buy a critical mass of medical assets with exposure to some of the top health systems in the country, including Advocate Aurora Health, Einstein Health and INOVA Health System,” CBRE Vice Chairman Chris Bodnar said.
Bodnar, Lee Asher, Ryan Lindsley and Jordan Selbiger of CBRE’s healthcare capital markets team were advisers on the deal. CBRE’s Sabrina Solomiany helped the buyer secure financing.
The other properties are in Minnesota, Pennsylvania and Virginia.