Supply Can't Keep Up with Feverish MOB Demand
Unlike some South Florida real estate sectors (think million-dollar condos), MOB demand is outpacing supply because of Miami's fundamentals and population statistics.
JLL SVP Noël Steinfeld (pictured here in a selfie she sent us) tells us that demand for new medical office space in Miami is been driven by fundamental changes and consolidation in the healthcare industry. Miami's long been a strong market for healthcare space, and that's accelerating. "Providers who are positioning themselves for the next decade of growth want to invest in modern facilities.”
Not only that, demand is being fueled by an increase in population, which means higher demand for medical services. JLL was recently tapped by developer Onicx to lease Mercy Medical Arts, a new four-floor MOB on the main campus of Mercy Hospital that will open in the spring. Located at 3683 South Miami Ave in Coconut Grove, the property totals 115k SF of new medical office space.
Investors have a keen interest in South Florida MOB as well. “With medical office visits projected to increase significantly over the next five years, the medical environment characterized by high procedure volumes,” says CBRE SVP Scott O’Donnell. Recently CBRE arranged the sale and financing of a five-story MOB at 3700 Washington St on the campus of Memorial Regional Hospital South in Hollywood. KAS Hollywood LLC acquired the 57k SF property from Washington ST Medical LLC for more than $8M. “This building is a rare value-add medical office opportunity that benefits from its hospital campus location," explains Scott. He, along with colleagues Dominic Montazemi, Miguel Alcivar and Greg Miller, and with Lee Asher of CBRE’s Atlanta office, repped the seller.