Current Medical Office Market Conditions H2 2021
Some of the more common types of practices choosing shopping centers include stand-alone physicians, dentists, veterinary clinics and other healthcare practitioners. These types of tenants often prefer open air-centers with retail anchors like grocery and drug stores.
Tenants at shopping centers typically pay higher rents due to their desire for the best available space, high build out costs and higher than retail-standard parking requirements. Medical office tenants tend to sign longer lease terms and tend to have higher credit ratings.
The average stand-alone medical office in New Jersey is under 5,000 sf. Hospital affiliated and surgi-center users require significantly more space. Purpose-built medical office has a relatively tight vacancy rate @ 8.7% but very few new buildings are under construction. Vacant retail locations present a viable option.
Call us for current availability and to discuss alternatives to traditional medical office space.