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Growth Sparks Medical Office Demand

PHOENIX—Colliers says the forecast for the Greater Phoenix medical office market is favorable for 2016, as demand will be spurred by both employment growth and population expansion.

By Lisa Brown | lisabrown | Updated on February 29, 2016

Michael Dupuy Dupuy says to pay attention to the larger users for a look at the next 24 months.

PHOENIX—The Greater Phoenix medical office market strengthened in 2015, particularly in the second half of the year. Part of the improvement in the local medical office market is being driven by a strong pace of employment growth in the healthcare sector. More than 9,000 jobs were added in this segment of the local economy in 2015, representing growth of more than 4%.

Vacancy ended the year below 17%, the lowest figure since mid-2008. Local vacancy is expected to continue this gradual pace of improvement, even as a few new development projects come onboard, according to the fourth quarter 2015 medical office market report released by Colliers International in Greater Phoenix.

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