2A — January 2025 — M id A tlantic Real Estate Journal
www.marej.com
M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists .................................Mike Hargrave, Revista, LLC Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 37, Issue 1 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900
CONFERENCES Where Industry Leaders Connect
Mike Hargrave
UPCOMING DATES TO REMEMBER
Outpatient Real Estate Sector Riding a Wave of Strength! he outpatient real es- tate sector is large and diverse. The terms Medical Office Building (MOB) or Medical Outpatient Build - ing (also MOB) are often used to describe the main property types in the outpatient sector. In all, the MOB sector com - prises over 1.6 billion s/f across the continental United States. The MOB sector has been a benefactor of several long-term secular trends such as an aging population (yes, older adults visit the doctor more often) and advances in technologies that have enabled many former inpatient procedures to be con- ducted in outpatient settings. These trends have created increasing demand for space within MOBs and have led to a healthy supply and demand balance for outpatient space. At least this was the para- digm up to the recent Covid-19 pandemic. But then things began to change. T
2nd Annual Southern NJ CRE Forecast State of the Market
FEB. 20
Yes, the MOB sector was im - pacted during the initial shut- down stages of the pandemic as many physician offices closed during this stage. In fact, physician office employ - ment fell by 11.1% from Feb- ruary of 2020 to April of 2020 (source, BLS, St Louis Fed). But while there was impact, it was not as severe as some other sectors and was quick to recover. Real estate fundamentals during the pandemic were largely unimpacted as occu- pancy rates remained steady between a range of 91.4% to 91.5% from the middle of 2019 to the middle of 2021. Construc- tion or new deliveries experi- enced a slowdown that began during the pandemic. Supply shortages led to increasing
costs of lumber, steel and other construction materials which helped to slow new construc- tion starts. But after the middle of 2021 fundamentals began to change again within the MOB sector. Physician office employment grew at a faster rate than before the pandemic. This led to increasing demand for new space within MOBs. Absorp - tion (the change in occupied space) has averaged 4.4 million SF per quarter across the top 100 metros since the middle of 2021. This is faster than the 3.4 million SF per quarter average prior to mid-2021. On the supply side, comple- tions have slowed materially since and before the pandemic. Prior to mid-2021, developers continued on page 22A
This event is tailored for commercial real estate professionals, investors, and industry leaders looking to gain valuable insights into the trends and opportunities shaping the Southern NJ market.
PREMIER EVENT Transforming CRE with AI
APRIL 3
Unlock the potential of AI in commercial real estate — join experts as they share groundbreaking technologies shaping the industry's future.
3rd Annual Cannabis and CRE APRIL TBD
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Discover exciting opportunities and innovative trends as real estate professionals, investors, and industry experts explore the thriving intersection of cannabis and commercial real estate.
8th Annual PA Healthcare Medical Conference
MAY TBD
Be part of the conversation at the 8th Annual PA Healthcare Medical Conference, where healthcare professionals unite to discuss cutting-edge solutions and advancements in medical care.
Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law
ATTEND | SPEAK | SPONSOR
Contact Linda Christman, Owner/Publisher, Conference Producer P: 1-781-740-2900 lchristman@marejournal.com www.marej.com
Made with FlippingBook Ebook Creator