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As the Growth in Utah Rises, Competition for Land and Space for Medical Office Buildings Continues Across the Wasatch Front
SALT LAKE CITY, UT--(Marketwired - Mar 24, 2016) - Cushman & Wakefield/Commerce released its 2015 year-end medical office market report which shows a strong overall year for leasing and absorption activity. Ambulatory care centers and several large health care providers competed for space across the Wasatch Front, as the trend of more healthcare services being offered near high populated areas continued.
With an absorption of 135,264 square feet in 2015, the strongest demands were on-campus buildings, where majority of absorption occurred. The overall vacancy rate moved upward by 0.2 percentage points bringing the overall vacancy rate to 12.9 percent as inventory grew.
"Utah's medical office market saw strong growth in 2015 as demand continued to rise," said Trigger Reital, market leader of Cushman & Wakefield/Commerce's Salt Lake City office. "A growing trend we're seeing is healthcare organizations are looking for properties to build new ambulatory or 'medical mall' delivery systems that provide patients a number of different services (pediatricians, internists, dermatology care, etc.). The concept is to have an all-in-one location in close proximity where consumers live and work. Also, Utah's aging population and population growth in general will continue to keep medical care services in high demand throughout the state in 2016."
Two significant buildings were added to inventory in 2015. The class A on-campus 80,000 square foot building of Lone Peak Specialty Center was completed and is already 71.8 percent leased. The former Doxie-Hatch building underwent renovations and was completed as Evergreen Office Plaza. Though still vacant, it is seeing a great deal of both lease and sale interest.
Dominant healthcare companies remain aware of the exponential growth in Utah, and have been making more aggressive motions to acquire land and expand to enhance and increase services provided to a greater population. Intermountain Healthcare expanded their Riverton Hospital by 120,000 square feet, which will serve as a new location with expanded services for Primary Children's Rehabilitation Center. The Orthopedic Specialty Hospital's (TOSH) new medical office is adding its final touches on its new 80,000 square foot building and will be fully occupied by Intermountain Healthcare employees. The University of Utah Health Sciences has 150,000 square foot new ambulatory care center under construction at Station Park in Farmington and Utah Valley Hospital continued forward with its massive $430 million expansion, which is expected to complete in 2018.
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About Cushman & Wakefield/Commerce
Cushman & Wakefield/Commerce, headquartered in Salt Lake City, Utah is an independently owned and operated member of the Cushman & Wakefield Alliance, with offices throughout Utah, Nevada, Washington and Idaho. The firm partners with its sister company, Cushman & Wakefield/NorthMarq to provide innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory.
Together the firms manage more than 52 million square feet of retail, industrial, and office assets, have annual revenues of more than $100 million, and employ more than 750 professionals. Learn more at www.comre.com, and www.cushwakenm.com. Cushman & Wakefield/Commerce and Cushman & Wakefield/NorthMarq are part of the Cushman & Wakefield platform.
About Cushman & Wakefield
The successful merger of Cushman & Wakefield and DTZ closed September 1, 2015. The firm now operates under the iconic Cushman & Wakefield brand and has a new visual identity and logo that position the firm for the future and reflect its trusted global legacy and wider history. The new Cushman & Wakefield is led by Chairman & Chief Executive Officer Brett White and Global President Tod Lickerman. The company is majority owned by an investor group led by TPG, PAG, and OTPP.
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm's 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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