Wednesday, April 15, 2015

C&W Releases 2015 Central Florida Medical Office Report


Anne Spencer

 ORLANDO, FLORIDA – Cushman & Wakefield  released its 2015 Central Florida Medical Office Report. This comprehensive analysis is published annually by Director Anne Spencer and Cushman & Wakefield’s Healthcare Practice Group.

The report examines on-campus and off-campus medical office inventory in numerous “hospital clusters” located throughout Orange, Seminole, Osceola, and Lake Counties. It is the only report of its kind in the Central Florida region.

The key take-aways from the second edition of this report are as follows:

The fundamentals of the leasing environment in Central Florida continue to evolve. 

Direct medical office vacancy in the Orlando MSA has fallen 5.2 percentage points in the past five years and medical office rental rates have simultaneously dropped 5.5 percentage points.

 Year-over-year leasing activity, measured in square feet, decreased substantially after an extended period of positive growth.

Medical office building sales remain limited. In Central Florida, most owners are long-term holders. Those medical office properties which do come to market usually sell at a premium when compared to pure office plays.

The pace of on-campus hospital construction has finally picked up after five years of limited deliveries. Several hundred thousand square feet of new space should be delivered over the next three years.

The Affordable Care Act has introduced some uncertainty into the decision-making process of real estate principals. 

This is one of the reasons why there have not been more positive developments in the medical office market.

For a complete copy of the company’s news release, please contact:

Anne Spencer
Director
(407) 541-4434

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