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New space sells for record low price ($33 per SF), located near Dublin Methodist hospital

A 16,000 square foot condominium suite located across from the hospital just sold for $33 per square foot.

The property was built by a private developer with asking prices $150+ per square foot, but the lack of sales forced a situation where the lender had to take the property back.

After the lender marketed for about a year, they set a deadline to close by the end of year.

With the end of the year nearing and no contracts in place, they decided to ask for best offers and accept the highest.

This price point tells us what a speculative investor is willing to pay for a space.

Unlike investment sales (where tenants are in place) or user sales (where the buyer is going to use some / all of the building) this speculative purchase scenario is not something we’ve had much data on.

This low price is indicative of the investor’s risk. He will need to find tenants (which could take an unknown period of time) and will need to contribute to the build out costs (not a totally known cost).

The carrying costs such as taxes and insurance will reduce his return, so he is highly incentivized to lease or sell the space quickly.

Despite these risks, this is likely a tremendous opportunity for the investor.

He can set his asking rents and prices substantially lower than the rest of the nearby market and still make a decent profit.

For the investor, as well as whomever buys or leases from him down the road, this should be a win-win.

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Q3 2011 Medical Office Trends

Presenting Medical Office Trends via video

Veteran Salute, and my old ship is hosting Michigan State - UNC Basketball!

I wanted to take a minute to salute and thank our veterans. My heart especially goes out to those who have served over the last ten years.

Although I am a veteran, the sacrifice I made don’t compare what most of them had to do.

I can’t help but to feel a twinge of pride knowing that I’ll be able to see my ship tonight as the USS Carl Vinson hosts the Michigan State – UNC basketball game.

I lived on board for 4 years… I know the crew will love the event.

It’s a well-deserved break, and kudos to those who came up with the idea and executed it.

If you happen to have a minute tonight, it could be worth a look… it’s certainly something you don’t see every day.

Link:
http://www.freep.com/article/20111111/SPORTS07/111110425

Massachusetts Tries to Rein In Its Health Cost

In the continuing saga of healthcare reform, it appears that one of the early adopters of a new mandated healthcare coverage model is rethinking and may reengineer their approach based on the unsustainable results that have stemmed from the program's launch in 2006. Read the full New York times article here:

http://www.nytimes.com/2011/10/18/us/massachusetts-tries-to-rein-in-its-health-care-cost.html?_r=1&ref=todayspaper

NY Times: Medical practices work to serve patients and the bottom line

Decent overview article from the NY Times that includes a snippet from a local dental practice and a variety of medical specialties throughout the country.... Link at
http://www.nytimes.com/2011/09/08/business/smallbusiness/medical-practices-keep-eye-on-the-business-side.html?_r=1

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