Limited Supply Stabilizes Tucson Medical Office Market

TUCSON, AZ-Although the city added to its medical office space inventory during the most recent building boom, most of the product was absorbed by users and ongoing demand is keeping the market stable.

For example, Tucson Heart Hospital-Carondelet LLC recently signed a long-term lease 18,976 square feet at 4892 North Stone Ave. to expand is medical offices. The company is a subsidiary Carondelet Health Network, which operates four hospitals in southern Arizona, as well as the Carondelet Neurological Institute, 20 primary care and specialty care offices, two ambulatory surgery centers and various outpatient services.

The single-story building, which was built in 1998, previously housed the Tucson Heart Center, a cardiology practice run by Pima Heart Group, according to Thomas Nieman, a principal with PICOR Commercial Real Estate Services, a Cushman & Wakefield Alliance member. Nieman and Rajan Lal represent the building owner, Nashville, Tenn.-based Healthcare Realty Trust Inc.