Phoenix’s medical office inventory is expanding
The Phoenix medical office inventory has increased 3.0 percent totaling 509,000 square feet of new product in the last four years.
March 12, 2019
- The Phoenix medical office inventory has increased 3.0 percent totaling 509,000 square feet of new product in the last four years. Over the last six quarters, rents have increased over seven percent highlighting a healthy market. A growing and aging population is contributing to the strong demand for healthcare services. The Baby Boomers population has increased 34 percent over the last eight years and is predicated to grow by an additional 8 percent in the upcoming years.
- The demand for additional medical space is being met with large developments. The Mayo Clinic has invested in a $648 million expansion, doubling the current Phoenix campus. Other major construction projects in the valley include Chandler Regional Medical Center expansion, HonorHealth Sonoran Medical Campus and two new Banner Health Medical campuses. Upon completion, these will add an additional 2.5 MSF of space to the inventory.
Source: JLL Research, BLS