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Feature Story: High demand, high prices in SoCal

InterFace HRE West provider panel discusses space needs in Greater L.A.

By John B. Mugford

The InterFace HRE West healthcare provider panel included (from left to right): Jeff West of Providence St. Joseph Health, Karen Costello of Hoag Memorial Hospital Presbyterian, Jill Gordon of Nixon Peabody and Steven Stubbs of Adventist. Not pictured: moderator Bryan Lewitt of JLL. (HREI™ photo)

NOTE: This article was written with information from a panel session that took place prior to the outbreak of the COVID-19 pandemic in the United States. As a result, much of what was discussed might not hold true for the immediate future but is likely a reflection of the market in the long term.

LOS ANGELES – There might not be a market in the country with as much of a need for new medical office space, especially in convenient, off-campus locations that allow health systems to expand their footprints, than Greater Los Angeles.

As Roseville, Calif.-based Adventist Health, which has long been focused on the strength of its inpatient delivery model, continues to expand its ambulatory network in Southern California, “we’re in desperate need for space,” said Steven Stubbs, regional director of Clinic & Ancillary Development with Adventist.

“That’s specifically in the Southern California market, and just the cities that we’re in,” he added. “So, I think if there are opportunities out there to look at space, repurposed space. I think Adventist Health is always going to be an interested party … and not just Adventist Health as a tenant but the physicians that we bring on board.”

Even though the health system has long preferred to own the space it occupies, Mr. Stubbs added:  “Costs for us here as you know in Southern California, the Los Angeles area, are kind of expensive, and so that inhibits our strategy … as we’re looking to (expand our outpatient network.) I guess overall, in summary, we’d love to have more inventory, not necessarily something that we own, but what’s available out there in the marketplace.”

Mr. Stubbs was part of “provider panel” discussion at the 11th annual InterFace Healthcare Real Estate West conference on Feb. 19 at the Omni Los Angeles.

Moderated by Bryan Lewitt, managing director of Southern California Healthcare for Jones Lang LaSalle Inc. (NYSE: JLL), the panel also included: Jeff West, executive director with Providence St. Joseph Health; Karen Costello, senior program manager of planning with Hoag Memorial Hospital Presbyterian in Newport Beach; and Jill Gordon, partner, co-chair of the Life Sciences Practice with national law firm Nixon Peabody.

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