Q4 2010 Quick Summary Of Medical Office Leases And Sales

Columbus medical office sales and leasing have continued an upward trend.

Office investment and sales activity has been consistent with Q3 performance, both quarters being substantially better than recent memory. Investment sales include 921-A Jasonway (Cleveland Clinic Star Imaging as tenant) and another substantial non-public investment sale, both indicators of increased investment sales activity. Owner occupant sales fourth quarter include the purchase of the 7,387-square-foot building at 2856-72 West Broad St. by D+P Holdings and Hilliard Pediatrics’ purchase of 7,359 square feet within a 14,000-square-foot facility for $717,500.

The Leasing activity market has picked up as evidenced by a more broad based increase in leasing activity, as opposed to recent quarters where the market was impacted more heavily by a select handful of transactions. Q4 leases include:American Kidney Stone Management / Pathology Labs leased 2940 SF at 2100 Marble Cliff Office Park.... Dr Tolani leased 2600 SF at 5925 Cleveland Avenue... Columbus Endocrine Consultants leased 4528 SF at 6790 Perimeter Drive across from the Dublin Hospital... Solis Women’s Health Care leased 5651 SF at 974 Bethel Road.

Additional recent activity including a focus on Dublin and some hospital activities are included in previous blog posts below.

For a full market report, please email Paul Heiserman with Colliers Healthcare Services Group, paul.heiserman@colliers.com

Dublin Medical Submarket Moves- Finally!

In an area often referred to as an example of over-built medical office space, leases and purchases have absorbed some of the space and plans are in the works for a new building. Professionals for Women's Health has acquired a condo across from DMH and Columbus Endocrine Consultants is in another park across from DMH. This is on the heels of a year in which a number of other vacant spaces in the area have been absorbed by moves including Nationwide Children's Hospital's presence in the hospital MOB.

So, with this submarket looking a lot less bleak than in recent years, Riverside Radiology and Interventional Associates has partnered with Hplex to propose a 29,800 square foot new build directly across DMH. The proposed rents are $16.95 per square foot, which includes a robust $60 per SF in tenant improvement allowance. The property includes 5 parking spaces per thousand square feet.

Nationwide Childrens Adds To Inertia of East Polaris Medical Submarket

In what I've considered to be the strongest cluster of medical office activity in the region, Nationwide Children's Hospital has purchased 10.633 acres for $1,920,000 total ($180,570 per acre). As the picture below indicates, this new purchase is adjacent to their current facilities by North Cleveland Avenue.

As a general rule of thumb, 10. 6 acres could accomodate up to 106,000 square feet of medical office space. With this particular site, the woods and terrain adjacent to the creek prevent the site from being developed to that capacity, and according to Business First they're planning a 46,000 square foot facility.
Full article from Business First is located at: http://www.bizjournals.com/columbus/print-edition/2010/12/31/childrens-adding-surgery-at.html

This purchase took place December 15th, 2010 and, along with OhioHealth's move to add 40,000 square feet off of their Westerville campus on Polaris, indicates that big moves are still taking place in the area. This area is also of interest to some other larger practices, who are quietly looking for the right opportunities.

Stay tuned...

    Aerial from Delaware County Auditor