A big driver in the US economy has always been the advancements within the medical field and the healthcare industry as a whole. This has helped fuel the demand within the medical office real estate sector, as medical professionals are always in search of new medical office property to establish their businesses.
If you are looking for a commercial medical office property for your healthcare practice, there are different types of healthcare real estate. Below, we outline the four common types of medical office real estate for your healthcare practice.
What are the Four Common Types of Healthcare Real Estate
Four common types of healthcare real estate for your healthcare practice are:
- Office Space
- Retail Space / Shopping Centers
- Medical Office Buildings (MOB)
- Hospital Campus
#1 Office Space
Traditional office space can provide an alternative to doctors looking for medical office space. Typically office buildings have more on-site amenities, provide more natural light within the suites and often are less expensive than the other three types of healthcare real estate.
The main driver when comparing an office building to the other three options is, will the city’s zoning allow you to operate in an office building as a medical doctor. Typically, due to the traffic generated by medical practices, cities require more parking for medical, and office buildings often times don’t have the necessary parking to accommodate a medical practice. Should the city allow a medical use within an office building, there are many benefits to the tenant such as, on-site food amenities, conference centers, on-site security and tenant events.
The cost of office space is subject to change and can be influence by property location, property age, quality, and traffic. In comparison to a medical office building “MOB” vs Office Space vs Retail space vs Hospital campus, office spaces are a cheaper alternative.
Benefits of Choosing Office Space For Healthcare Practice
- On-site amenities
- Lower lease rate
- More natural light
- Lower operating expenses
- Multiple benefits
#2 Retail Space/Shopping Centers
The main advantage of retail/shopping spaces is that they usually have more visibility, exposure, and traffic than other commercial properties. Everyday retail/shopping centers serve thousands of consumers, and this traffic can be very beneficial to some medical practices.
Another benefit of choosing a retail or shopping center for a healthcare practice is the synergy between other businesses within the center, which helps promote more traffic to your medical practice in many cases. Retail centers are easy to find and well-known landmarks. They make it easy for your patients to enter and exit by providing direct access to your suite from the parking area.
Benefits of Choosing Retail Space or Shopping Centers For Healthcare Practice
- More visibility and exposure
- Huge public drive
- Direct suite access
- Abundant parking
- Easy to identify
#3 Medical Office Buildings (MOB)
Medical office buildings (MOB’s) are fully dedicated to healthcare practitioners. MOB’s provide a strong medical environment that help promote your healthcare business. Doctors within MOB’s often time refer their patients to other doctors within the same building which creates great synergies among the tenants. This can be an important advantage of having your healthcare business in a medical office building.
Medical office buildings provide a wide range of medical services such as surgery centers, labs, general practitioners, orthopedics, dentist and other healthcare-related services. Although medical office buildings are a little more expensive than other commercial buildings, Landlords tend to provide larger tenant improvement allowances and provide a professional clean synergistic environment for a doctor to have their office.
Benefits of Choosing Medical Office Buildings For Healthcare Practice
- Exclusive for healthcare
- Ideal for medical practices
- Internal referrals
- Larger tenant improvement allowances
- Healthcare professionalism
#4 Hospital Campus
The Hospital campus is somehow similar to medical office buildings (MOB’s), but the advantage of choosing a hospital campus instead of a MOB for your healthcare practice, is that you have direct access to the hospital should you need that for your practice.
Today many medical office buildings are still located on hospital campuses. Another advantage of having your healthcare practice on the hospital campus is the close proximity to the hospital, and the synergies created by being immersed in a healthcare environment.
Benefits of Choosing Hospital Campus For Healthcare Practice
- Equivalent to medical office buildings
- Synergies of being on a medical campus
- Strong referral base
- Large medical amenities
- Fully dedicated to healthcare facilities
- Time saving