• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
  • Blog
  • Free Resources
Revista

Revista

  • About
    • Meet Revista
    • Advisory Board
    • Partners
    • Press
    • Rising Leaders Council
    • Sponsorship
    • Contact Us
  • Events
  • Why Subscribe?
    • Featured Products
    • Business Development
    • Underwriting & Due Diligence
    • Asset Management
    • Capital Markets
    • Site Selection & Development
    • Leasing
  • Subscriber Login
Home / Construction/Development / Metro Highlight – Phoenix

Metro Highlight – Phoenix

August 19, 2020 by Hilda Martin Topics: Construction/Development, Industry News, Leasing/Property Management, Mergers/Acquisitions, Policy/Legislation, Real Estate Financing/Capital Markets, Revista News

Phoenix is an investor favorite for sure. While nationwide roughly 65% of medical office space is user owned, in Phoenix only 30% is user owned. A whopping 70% of inventory in the market is owned by investors. A significant driver of this is how incredibly fast Phoenix is growing. In 2019 Phoenix edged out Boston as the 10th largest metro area in the country. The market is 3rd for 10 year numeric growth and Maricopa county has been the fastest growing county in the entire US for 3 years running. Whew!

According to Trisha Talbot, Managing Director at Newmark Knight Frank in Arizona, “Phoenix’s phenomenal rate of growth is a tremendous factor in the resilience of medical office assets in the market.  The valley also has a significant 65 and over population that require additional healthcare spending on services and procedures.”

Developers and providers are very active in delivering the needed services and space to this growing population – Phoenix is 3rd only behind New York and Chicago for total medical office construction currently under way. These projects are either self developed by the provider or largely pre-leased when developed by a third party, so most of the deliveries tend to be absorbed upon opening.

It wouldn’t be fair to talk about any market without discussing the effects of the pandemic. In addition to the virtually nationwide shutdown in early spring, Phoenix had to deal with a significant spike in COVID cases in June. Since then cases have come down and seem to remain under control. Throughout all of this, occupancy has remained steady. Phoenix is exhibiting this stability in sync with the national trends and can be attributed to lack of turnover and systems even taking on more space. In addition to new space being absorbed, providers are almost all renewing their leases. In fact, nationwide in the Revista Fundamentals report, tenant retention is at an all time high in the second quarter as far back as the report tracks ~2009.

Want to learn more about your market? Subscribe to Revista!

Hilda Martin
Hilda Martin

Other Articles by Hilda Martin:

    • MOB Rent Growth Acceleration Slows in 2Q
    • High Demand in the Sunbelt, Phoenix Tops the List
    • Transaction Activity has Slowed, but Providers are still Selling

Previous Post:Hammes Partners Kicks Off Q3 with a $147.1 Million Healthcare Portfolio Purchase
Next Post:MOB Sector Remains Resilient; Revista Webcast, Data Indicates Stabilized Occupancies Despite COVID-19

Sidebar

Topics

  • Construction/Development
  • Industry News
  • Leasing/Property Management
  • Mergers/Acquisitions
  • Policy/Legislation
  • Real Estate Financing/Capital Markets
  • Revista Best Practices
  • Revista News
  • Sponsor Spotlight
  • Transactions
  • Uncategorized

Archives

RSS Recent Blog Posts

  • Demand for Outpatient Space Growing Faster than Supply November 28, 2023
    It is no secret that many healthcare services and procedures are increasingly moving towards an outpatient setting. Advances in technology, cost efficiencies and other factors have enabled this move which has led to consistent and steady growth of demand for outpatient space, and the underlying supply of such space. Revista normally tracks the supply/demand picture […]
    Mike Hargrave
  • Rent Inflation Impacting Outpatient Sector October 25, 2023
    Revista recently held its 3Q23 Subscriber Webinar.  One of the topics discussed was rent inflation. The charts below show Avg. NNN and Avg. 90th percentile base rents for medical office … The post Rent Inflation Impacting Outpatient Sector appeared first on Revista.
    Mike Hargrave
  • Are MOB Sales Taking Place in the Current Environment? October 24, 2023
    The year of 2023 has brought significant drops in sales activity across the commercial real estate sector. The higher cost of capital is driving investors into cautiousness and the healthcare real estate market is not immune … The post Are MOB Sales Taking Place in the Current Environment? appeared first on Revista.
    Stephen Lindsey
  • MOBs Located on a Hospital Campus vs. MOBs Close to a Hospital Campus. Is there a Difference? September 21, 2023
    Historically, Revista has categorized medical office buildings (MOBs) into two categories, on a hospital campus or off. However, recently Revista has developed a third category, adjacent. These are the properties that fall within a quarter mile of a hospital campus footprint. Conventional thought suggests that on-campus assets demand a premium, but what about the buildings […]
    Stephen Lindsey

Other Free Resources

Industry Directory

Search for and/or list your medical real estate services in Revista’s medical real estate directory.

Reports & White Papers

Download free reports & white papers on medical real estate.

Add Lease/Sale Listing

Revista provides free lease/sale listings for healthcare real estate.

Ready to Schedule a Demo?

Get in Touch Now
  • Why Subscribe?
  • Events
  • The MOB Scene
  • Add A Directory Listing
  • Add Lease/Sale Listing
  • Contact Us
  • Sponsorship
  • About
  • Terms of Use
  • Press

SIGN UP FOR MOB SCENE NEWSLETTER

  • Twitter
  • Facebook
  • LinkedIn