Occupancy has remained stable throughout 2020 and into 2021, but quarterly absorption reflects some level of negative impact, although short in duration, in the third quarter of last year. While the average each quarter for absorption in the top 50 markets has been around 3.2 million square feet, in 3Q20 that total fell to just 800K. Interestingly, this impact shows to a greater extent in the largest 10 markets.
In March, when most of the country shut down in order to slow the spread of COVID 19, when one needed to see the doctor, in many cases the only option was through a virtual visit. As of July, Telehealth was still representing 21% of all ambulatory visits. How will this affect physician and health system's ambulatory space needs? We asked in our October survey, and here is how you answered.
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%.