First few Article Sentences
Location, location, location. This steadfast retail mantra applies equally well to the medical office building (MOB) segment of the real estate market. All across the country, in the face of anemic occupancy rates, rents, and new development in the traditional office building segment of the real estate market, newer well-located MOBs continue to attract physicians and clinics. While the traditional office vacancy rate in the Puget Sound region hovers around 20 percent (about the same as the national vacancy rate) the MOB vacancy rate sits at a healthy six percent, compared to 12% nationally. The investment community is taking a hard look at these numbers--any real estate segment in a growth cycle gives the promise of healthy returns. The CB Richard Ellis Healthcare Capital Markets Group conducted a survey of MOB investors and developers in early 2010. Approximately 70% of the respondents said that they would be buying MOBs in 2010. In addition, 88% were looking for MOBs priced above $10 millionó the target range for newer, Class A, on-campus buildings.