MOBs With Leaseup Potential Especially Hot
Even among the scorching MOB sector, some assets stand out. Properties that haven’t achieved full occupancy (and highest rents) are especially coveted. Avison Young principal Dan Vittone tells us that buyers are looking for well-located MOBs not only with a strong existing tenant base—and medical tenants tend to be sticky—but also the ability to add value through lease up. Dan's snapped in in Whistler, about to head to Vancouver on a short flight over glaciers.
The ARA and other changes in the industry, Dan says, are upping the demand for ambulatory surgery centers, stand-alone emergency departments, and multi-tenant properties housing physician offices. Dan and colleague Alan Pekarcik, in the company’s Irvine office, recently repped Cypress West Realty Partners in its sale of the 23k SF Mission Health Center in Rancho Santa Margarita. The building is 77% leased to six medical and dental clients, with the largest, Mission Hospital Regional Medical Center, occupying 34% of the building.
