Optimal Timing

Coming from a career in banking, Patrick Marston wanted to establish himself in a niche with a strong credit driver when he transitioned into commercial real estate development 17 years ago.

He found it in health care-related projects, which typically require outsized investments per square foot and considerable tenant improvement dollars for patient care, together with strong tenant credit.

That's because most medical buildings top out at $300 per square foot to develop, roughly one-third more than an urban Class A office tower. Tenant improvements are often twice the amount as in standard office space, the result of specialized equipment and fixtures that are installed.