It's more difficult to describe is the status of independent physician practices related to new space and new medical buildings. Despite some of the recent challenges and uncertainty in health care, some notable physician led projects are moving forward and others have been recently completed.
Hand and Microsurgery Associates has broken ground on their new building in immediate proximity of Polaris Mall. The 45,000 square foot building will incorporate a surgery center, space for Hand + Micro, and up to 15,000 square feet of additional space is available. The land at this premium location is expensive, and this is reflected in the rental rates- they're asking $18.45 per SF NNN.
OrthoNeuro has completed their 60,000 SF facility in New Albany, which also has a major ASC component in addition to housing space for OrthoNeuro. About 19,000 additional SF is available to lease at an asking rate of $17.95 NNN.
The rates for these buildings are an uptick from pricing for new medical office space a few years ago when rates for most new build spaces were hovering around the $16 NNN mark, although it's worth noting both of these are premium locations.
There is activity in these new buildings, and their ability to lease up will be an interesting indicator of the medical office market going forward, particularly as it relates to new buildings with speculative space available.
Work underway near Polaris Mall MOB
