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Medical office space in the Tampa area is so tight only a half dozen properties have blocks of 5,000 square feet or greater, according to a new report from commercial real estate brokerage firm Cushman & Wakefield.
Of the six properties, half are located in the North East Tampa market near Florida Hospital, USF Health and Moffitt Cancer Center. The largest block of available space is found at 3500 E. Fletcher Ave., which at 60.6% occupied had 38,500 square feet available for rent.
The other blocks are contained in 12210 Bruce B. Downs Blvd.; 3000 E. Fletcher Ave.; 2727 Martin Luther King Jr. Blvd.; 6919 Dale Mabry Highway; and 4710 N. Habana Ave., the firm's second quarter Tampa Bay Medical Office Report notes.
In response to the shortage and continued demand from an aging and burgeoning population, new medical office development is coming.
Four new medical office buildings of more than 5,000 square feet are scheduled for delivery this year in the Tampa area, and Cushman & Wakefield expects more inventory is forthcoming.
The largest new medical-related property to be completed in the region in the past year is a new headquarters for the Laser Spine Institute. It's a state-of-the-art, 175,000-square-foot building developed by Highwoods Properties that contains both administrative and clinical functions under one roof.
“The medial office market is taking shape in a way that has been expected for the past couple years,” says Brian Breeding of Cushman & Wakefield's Healthcare Practice Group and author of the report.
“Tampa is a bullish market for medical office development due to a lack of supply on newer, high-quality buildings with large blocks of space.”
Breeding, who has leased more than 650,000 square feet of medical-related space to a variety of owners, adds Cushman & Wakefield expects rent rates to rise for medical office, as newer product comes to market.
Medical office properties have maintained productive yields for investors and developers while supply has been constrained nationwide and development has been slow to counterbalance increased demand from practitioners. Health care macro-changes, too, have impacted the industry and caused greater demand.
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