SCOTTSDALE, AZ—Like other asset classes, healthcare real estate can find it difficult to locate the perfect site for a new development. One solution many of these developers are using is to redevelop older spaces. But even that comes with its complications.
This topic was tackled in a session at the recent GlobeSt. Healthcare Real Estate conference here in Scottsdale, AZ.
Demand is clearly there for product. When asked by moderator Julie Johnson, EVP of Colliers about underserved markets, panelist Steven Stubbs, regional director of Adventist Health, explained that there are many such areas in California. "There is a need to build freestanding EDs to serve certain populations."
Sheila Schmidt, VP of real estate development at Meridian, also talked about California, but noted that getting in that sweet spot where a client wants to be can be a bit more challenging than in other parts of the country. For Meridian, the company has been successful in taking non-medical facilities and making them medical. For example, Schmidt said that they recently closed on a facility that was a culinary arts school and brought it spec. "You need to look at things beyond face value in order to repurpose them. It is a creative way to get clients in the markets faster and be able to offer locations that are easily identified."
Johnson also noted that her company is working on selling a former Walgreens to a surgery center group.
One drawback, though, is that 15,000-square-foot footprints are hard to find, said Vince Femiano, SVP of Healthcare Advisory Services at Transwestern. "I see micro-hospitals being the true benefit," he said. "It is a cheaper avenue to get those dollars back to the door."
According to Schmidt, when looking at surgery centers, for example, the repurposed buildings you should be looking at are data centers, which already have some of the existing components you might need, like generator space etc.
|Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
