Below is a chart showing the 20 largest markets in the US and some key statistics relating to inventory and sales activity. They are ordered by the markets that have the most medical office space per capita. Houston and Boston lead the pack with over 5 square feet of space per person. Seattle is nowhere near the top in terms of penetration, but their sales stats over the last year trumps all in terms of total volume AND square feet sold as a percent of inventory. To top it off, these sales averaged out to the highest price per square foot in the top twenty markets at $489. So what is the deal (excuse the pun!) with the home of the Seahawks?
Some of the transaction volume can be attributed to several (5) CHI buildings that have been sold in the deal with Physicians Realty Trust. Also, one of the highest priced single building transactions of the year happened in Seattle which is certainly pumping up the average: Trammel Crow sold the First Hill Medical Pavilion on the campus of Swedish Medical Center for a staggering $884 per square foot.
Not shown below, but there is also not much in the way of medical office construction – even with an inventory penetration rate on the low side. There are a few projects in planning, but not much in progress. Total pipeline is under 3% of existing inventory.
So to sum up, Seattle is lower in terms of inventory penetration – both existing and new construction, with the highest sales volume and price per square foot. This would certainly qualify a market of interest! Subscribe for more info – and stay tuned!
Source: revistamed.com. Data believed to be accurate but not guaranteed. You may quote this data with proper credit to Revista.
*All sales transaction stats are from the last 12 months as of the writing of this blog