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and NorthStar Asset Management Group Inc. Thomas added that MOB development is less risky than other type of assets, as most new development is replacing old hospital space or entering new markets. Some developers are beginning to build on a speculative basis in response to diminishing MOB stock. In July, Arrowhead Health Center, LLC, an affiliate of Los Angeles-based Legend Real Estate Management, Inc., announced it will be developing Arrowhead Orchards in Glendale, AZ, the Phoenix markets first you could try here spec medical building in in about a decade. “Were currently seeing a significant lack of quality blocks of contiguous space over 5,000 square feet and as healthcare groups consolidate, the demand for functional larger blocks of space is increasing,” said CBREs Vince Femiano, who along with colleague Katie McIntyre will be responsible for the marketing and leasing of the new building. The property checks several boxes in its attractiveness as an investment. Its adjacent to the hospital with no ground lease restrictions, and the site has an opportunity for an ambulatory surgery center, Femiano Recommended Reading added. In the Dallas market, KDC will develop a 155,000-square-foot project in Irving, TX, with construction beginning this fall on buildings of 95,000 and 50,000 square feet of office space and a surgery center in one of the Dallas markets largest medical developments. Year-over-year demand growth for medical office is nearly twice as strong as for standard office space and the MOB vacancy rate of 8% at the end of the second quarter is 260 basis points lower than the broader U.S.
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