Tenants’ market for Central Florida docs
There may never be a better time for physicians to lease space in the area, says RJ King & Associates, newly hired by Seavest Inc. to market its local medical buildings
CENTRAL FLORIDA, Oct. 7, 2010 – Amid signs that the Central Florida commercial real estate market has finally bottomed out, there may never be a better time for physicians and other medical-related tenants to lease space, according to a local healthcare real estate consultant.
Tenants are in the driver’s seat, says Robert J. King, President of Tampa, Fla.-based RJ King & Associates, which has specialized in medical real estate since 1992. But now is the time to act because trends suggest that the market is improving, which inevitably means vacancies will fall and lease rates will rise.
The end of uncertainty regarding healthcare reform, coupled with the broader economic recovery, is giving hospitals, health systems and physician practice groups more confidence in the future, says Douglas Ray, President and Chief Operating Officer of Seavest Inc., a private investment management firm that owns several Central Florida medical office buildings (MOBs).
Astute physicians are leasing medical office space now – securing dominant locations and attractive lease terms that will benefit their practices for years to come, he says. For example, Mr. Ray notes that a medical practice recently leased 5,600 square feet – nearly 10 percent of the building – at the firm’s East Orlando Medical Surgical Plaza.
Seavest, which recently hired RJ King & Associates to handle leasing of its Central Florida properties, has four modern, Class A medical buildings in the Orlando area – all with highly desirable locations on Florida Hospital campuses and all of which were constructed within the past four years:
¦ East Orlando Medical Surgical Plaza is a three-story, 59,970 square foot MOB at 258 Chickasaw Trail, on the campus of Florida Hospital East Orlando. The facility, which opened last year, is anchored by a 15,400 square foot ambulatory surgery center on the first floor, and features covered patient drop-off and pick-up areas.
¦ Florida Hospital Medical Pavilion is a two-story, 40,517 square foot building at 4240 Sun ‘N Lake Blvd., adjacent to Florida Hospital Sebring. The MOB’s tenants include Florida Hospital Heartland Women’s Wellness Center and the Surgical Center at Sun ‘N Lake, a 14,600 square foot facility. It opened in 2008.
¦ The HealthPlex at Florida Hospital is a three-story, 80,901 square foot MOB at 2450 N. Orange Blossom Trail in Kissimmee, adjacent to the new Florida Hospital Kissimmee. Major tenants in the building, which opened last year, include an ambulatory surgery center and outpatient imaging center, as well as orthopedic and OB/GYN groups. The building features a two-story atrium at the main entrance, two covered walkways to the hospital and surface parking. There are future plans to build a new patient tower that emulates the design of the new MOB.
¦ Celebration Health Medical Plaza, a four-story, 92,800 square foot facility at 410 Celebration Place, on the campus of Florida Hospital Celebration. The MOB – which last year won the regional The Office Building of the Year (TOBY) Award from the Building Owners and Managers Association (BOMA) – is leased by the hospital and a range of physician practices. It opened in 2006.
Some space remains available for lease in all four facilities. Physicians affiliated with Florida Hospital are encouraged to contact Bob King at RJ King & Associates at 813.874.1515 or rjking@rjkingassociates.com for information on leasing opportunities.
About Seavest Inc.
Established in 1981, Seavest Inc. is a real estate investment management firm focused primarily on funding the development of, acquiring and asset managing healthcare real estate assets. A pioneer in this sector, Seavest made its first healthcare real estate investments in the mid-1980s. Today, the firm controls a significant portfolio of medical office space and manages three healthcare real estate investment funds. For more information, please visit www.SeavestInc.com or call (914) 683-8474.
About RJ King & Associates
Healthcare real estate is a unique asset type and the needs of these owners, investors and tenants are equally unique. Since 1992, RJ King & Associates Healthcare Real Estate Advisors has made its primary focus and specialization the provision of brokerage, leasing and property management services in the healthcare property sector. From dealing with hospital systems to navigating Stark Laws to managing a high traffic medical office building environment, we have the years of experience and expertise to provide these specialized services. For more information, please visit www.rjkingassociates.com.