Metro Phoenix Health Care Offices 'Growing Everywhere'
A growing — and aging — population brings an increased demand for medical services across the Valley. And that’s leading to more new construction and retrofitting of older buildings.
Real estate management and investment firm JLL said over the last five years, vacancy rates for medical offices have decreased 33% in metro Phoenix.
Katie McIntyre with JLL's health care practice said downtown, midtown and central Phoenix are seeing the most infill development, while the southeast Valley, including Chandler and Gilbert, are seeing new projects.
“I think health care is following rooftops and the growth, much like retail,” she said. “Everyone really likes to be closer to a freeway in really all product types for more access to labor pools, patients and just more convenience and visibility.”
McIntyre expects to see more demand in the southwest Valley as the Loop 202 South Mountain Freeway is completed. It will add 22 miles of freeway and connect the East and West Valleys.
JLL reports the Valley’s medical office market has nearly 17 million square feet of space.
"There hasn't been anywhere that is growing right now for health care," McIntyre said. "It's really growing everywhere. I think we’ll continue to see more and more medical office buildings being delivered throughout the Valley that are anchored by the outpatient surgery centers. There’s a large demand for that product type right now, and we’ll continue to see that grow.”