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Part 4 of 8: 2014 Outlook for Healthcare

​The medical office market will continue to improve at a more robust pace in 2014 post healthcare reform. After a year of learning how to adjust to the new regulations and cost reductions, many hospitals and large physician groups are implementing long-term plans to remain competitive under the Patient Protection Act.

We expect leasing absorption to increase over the modest growth of 1.5 percent we experienced in 2013. Medical office building sales volumes will continue to remain strong as hospital systems continue the trend of monetizing their medical office buildings to fund future growth and M&A activity.

The strongest growth will occur in the suburban communities where hospitals and physician groups are moving away from inpatient facilities and towards the delivery of primary care, outpatient and urgent/emergency care clinics. Many of these requirements will continue to be attracted to retail centers, pad sites and other facilities that offer their patients locational convenience and visibility.


 As managing director of healthcare services, Eric Johnson oversees development, leasing and investment sales for healthcare clients in the Gulf Coast region. He has more than 18 years of experience in healthcare real estate transactions and has worked with a variety of institutional owners. Since 2005, Johnson has completed more than 500 medical, brokerage and lease transactions. 


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Translations Blog Part 4 of 8: 2014 Outlook for Healthcare