Written by: Collin Fitzgerald
Collin specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial and Retail groups. He is responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis and utilizing statistical information to predict future behavior in the market. Keep reading for Collin's take on market trends in the Columbus medical office sector.
Key Takeaways
Suburban Expansion: Reflecting national trends, Columbus is seeing large healthcare providers establish significant outposts in suburban areas. This shift aims to meet patients where they are, while leveraging lower-cost environments to deliver services that may have previously occurred on-campus, contributing to greater efficiency within the healthcare ecosystem.
Occupancy Trends: Occupancy rates are aligned with the national average at 92.8%. While the general office market faces challenges due to work-from-home dynamics, the healthcare subsector remains resilient due to specialized buildouts, high relocation costs, and long-term leases. Looking ahead, medical specialties with lower buildout requirements—such as behavioral health providers and physical therapists—may find opportunities in general office spaces to secure lower rents or enhanced leasing incentives.
Lease Rates: Average lease rates for healthcare properties in Columbus stand at $23.30/SF, slightly below the national average. High interest rates have tempered new construction year-over-year, especially for practices not affiliated with health systems. The combination of limited new supply and growing demographics has caused a slight uptick in lease rates since last year.
Check out the full Q3 2024 Medical Office Trends report here!
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