What Was Revista’s Most Active Metro in 2017?
Continuing focus on high medical office sales activity might lead one to wonder where all this activity is occurring. In 2017, more than 25% of sales volume was represented in only 5 metro areas. Who’s leading the pack? HOTlanta. Of the more than $15B that changed hands, Atlanta’s pie slice was over $1B or 6%. Yes, some of that is Meadows & Ohly, but only part of that portfolio actually closed in 2017. Many of the other properties that traded were not part of a portfolio. Not only is Atlanta the most active in terms of sales, but it also has 1.4M square feet of outpatient space currently under construction, second only to New York City. Almost all of the projects under way are being developed by a third party and some of that construction is speculative. This differs from the rest of the country where most projects are self-developed by the provider. That being said, if one were to build speculatively, Atlanta would certainly be the place to do it! Atlanta continues to be one of the strongest cities both in terms of population and economic growth. The developers in Atlanta come in all shapes and sizes. Loudermilk Companies covers all types of commercial real estate with a focus and understanding of the Atlanta metro area. Currently they have two sizable medical buildings under way. One is 120,000 square feet with 30% pre-leased as of ground breaking. Parkside Development is more healthcare focused with a number of projects in various phases of development. They balance their speculative risk with some build-to-suit projects for Piedmont Healthcare and other local providers. Then there are some like Realty Trust Group who often work for a provider as a fee for service, and not only for development services but in many advisory capacities as well. They are currently building for Northside Healthcare and Harbin Clinic. Subscribe to Revista for more information on these projects and stats in your market area.
Atlanta MOB Key Stats: