Phoenix is an investor favorite for sure. While nationwide roughly 65% of medical office space is user owned, in Phoenix only 30% is user owned. A significant driver of this is how incredibly fast Phoenix is growing.
Let’s take a look at the Jacksonville market. At 7.7 million square feet (MSF), Jacksonville’s MOB market is the 36th largest market in the US based on total SF.
Overall, the sector is performing near cyclical highs in terms of occupancy and NOI growth. The occupancy rate as of the 2nd quarter 2016 was 92.5%.