In Metro Atlanta existing healthcare practices are expanding, as evidenced by YoY vacancy for the Cushman & Wakefield medical office building (MOB) tracked set, dropping materially from 14.1% in the first quarter of 2017 to 11.7% in the first quarter of 2018. The past two quarters alone have experienced 474,843 square feet (sf) of positive absorption.
However, cost pressures related to healthcare, such as insurance premiums for individuals, the providers cost, and materials and labor related to the newest MOBs and hospitals (which have increased almost 20% from 2016) continue to challenge the industry.
Additionally, newer concepts such as minute clinics in national pharmacies, urgent care facilities, and other retail healthcare centers continue to bolster the care-site options for patients. While these offerings will not entirely replace the need for traditional primary care providers, they do allow consumers the access to front-line medical care needs more in tune with the 24/7 insta-culture of today’s society. To view the first quarter Atlanta healthcare report, visit our Market Research page. Or, to contact a member of our Healthcare team, click here.