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| Katie McIntyre |
PHOENIX, AZ – A booming
population, aging demographics and freeway expansions have significantly
increased demand for medical services in metro Phoenix, according to the
Phoenix office of JLL, resulting in a 33 percent decrease in office vacancies
since 2010.
According to the company’s
recently released Medical Office Overview, the metro Phoenix medical office
market currently represents almost 17 million square feet of on- and off-campus
space.
An additional
301,000 square feet is now under construction – all located in the Southeast
Valley, which at more than 4.52 million square feet represents the Valley’s
largest medical office submarket.
“The variety and sophistication of
Phoenix’s medical office space is maturing right alongside our population
figures, and we are seeing positive results in all of our communities because
of this,” said JLL Senior Associate Katie McIntyre.
While the Southeast Valley is
enjoying the lion’s share of active new construction, the Southwest Valley was
the only metro submarket to achieve positive net medical office space
absorption, totaling 26,723 square feet during the first quarter.
JLL expects demand
in that submarket to continue to rise, particularly following this year’s
completion of the area’s new Loop 202 freeway expansion.
The Central Business District,
Southeast Valley and Northeast Valley are at a near tie for lowest medical
office vacancy rate, all sitting in the mid-11
percent range. This helps bring the overall Phoenix medical office vacancy to
just 13.3 percent, a full 33 percent lower than it was five years ago.
“These are powerful
figures that are attracting everything from world-class hospitals and
outpatient centers to innovative specialized treatment facilities," said
McIntyre.
"They
are also encouraging both large-scale facilities and physicians groups to
expand throughout the Valley, creating new development projects in growing
communities.
"That
growth – along with our popularity as a retirement destination – will only
expand this mix and provide welcome stability for our on- and off-campus
medical projects.”
To access JLL research
for Phoenix and across the U.S., visit the company’s research page at https://www.us.jll.com/en/trends-and-insights#research.
CONTACT:
Stacey Hershauer
Phone: +1 480 600 0195
