Medical Market Is Healthy
Hallstedt suggested keeping an eye on the M-6 corridor.
"I really see that as an emerging market, especially for medical, because doctors always want to be close to a hospital," Hallstedt said.
"Can the area support this development? We can, as
Mundell and Stan Wisinski, president of S.J. Wisinski & Co., agreed that the movement of some medical processes from hospitals to outpatient settings and the advent of specialists have spurred demand for medical offices.
Still, vacancies exist. The Harley Medical building on
Medical office space can run as high as $20 per square foot, plus operating expenses, Wisinski said. The price is driven by the extensive build-out required, with doctors' offices usually demanding extra plumbing and walls to create exam rooms.
That's high enough that many
"That's been a huge trend," she said. "They put the building in a separate LLC and can gain rent off that. It's really a matter of trying to defray costs. In years past, landlords only wanted to lease. In
"I think it goes through cycles," Wisinski added. "There was a cycle many, many years ago that doctors had to have at least part ownership. That died down, and now it's coming back strong, where doctors feel if they're going to pay rent, they should have ownership of it."
Parking also is a crucial issue for medical offices, Wisinski said.
"If parking is inconvenient for patients, they're going to look for more parking."
The older medical buildings dotting the city either face extensive remodeling to continue medical use or conversion to general office space, Wisinski said. "I'm finding medical practices shying away from older buildings. They want new and modern and buildings that have conveniences older buildings don't have."