Special Focus: Stressed office owners look to medical

BUT REPOSITIONING AN ORDINARY BUILDING AS AN MOB ISN’T EASY, EXPERTS WARN

By Murray W. Wolf

Mainstream office vacancy rates are rising at a time when medical office space is largely holding its own. This has prompted some traditional office landlords to consider the idea of repositioning their assets as medical office buildings (MOBs).

But is that viable?

It can be, but there are numerous obstacles, according to a group of healthcare real estate experts that gathered recently in the Minneapolis area. A panel discussion titled “Leasing and Real Estate Strategies for Healthcare Properties” was held March 31 as part of the Minnesota Healthcare & Medical Properties Conference in the Minneapolis suburb of Golden Valley, Minn.

The moderator of the panel was Steve Brown, senior VP and managing director of the Healthcare Advisory Group for Minneapolis-based NorthMarq Real Estate Services. The panelists included:

• John Dietrich, principal landscape architect, RLK Inc.;
• Mark Hansen, principal, Mohagen/ Hansen Architectural Group.
• John Herman, executive VP in the healthcare division, Welsh Cos.; and
• Louis Saurez, associate, Welsh Cos.