The old adage in a successful development has remained consistent for years.… location, location and location! In previous years if you were a medical office building developer, the prime location was on a hospital campus and as close to the hospital as possible. This was driven primarily by physician’s preference of being located with other types of physicians so they could garner patient referrals from their colleagues. Additionally if their patients required any medical, surgical or diagnostic procedures having a hospital within the vicinity provided an added convenience.
Fast forward to the present day implementation of Obamacare and things have changed. Individual physician practices have been replaced by large healthcare providers including hospitals, insurance companies and large physician specialty groups. These providers are now rewarded for keeping patients healthy and out of hospitals. The combination of these things has created a new world for medical office real estate. Now the keys to a successful development are:
- Location (yes still important)
- Demographics of the neighborhood
- Traffic counts
- Rental rate
If this sounds to you like the planning for a neighborhood retail center, you are absolutely correct! The new model for medical office buildings is locating them in bustling neighborhoods to serve the local patient clientele. In fact Ensemble Real Estate Solutions is currently in the planning stages for a new development following this model named: “Marketplace at THE CITY” located in the new village core of the City of Surprise. Marketplace at THE CITY is envisioned as a two story building with a large medical practice such as women’s health on the second floor and the first floor will feature wellness retail tenants such as a salon, med spa, massage, chiropractor, yoga studio, health food market and other wellness concepts that fit the targeted demographic profile.