Construction starts on Celebration Medical Center amid growth in the East Valley
GILBERT, Ariz. – November 21, 2024 – The groundbreaking ceremony took place on Wednesday for Celebration Medical Center, a new 68,000-sq.-ft. Class A medical office development in Gilbert, Ariz., led by development firm Okland Capital. CBRE is marketing the facility for lease.
“We are thrilled to break ground on this highly anticipated project in the heart of the Mercy Gilbert Medical Corridor. This development represents a significant opportunity to bring a premium healthcare experience to the community, combining elevated architectural design with accessible, off-campus medical services. As one of the last available parcels for medical use in this corridor, we are creating a destination that will meet the growing demand for outpatient care and provide an iconic space for physicians and healthcare providers to serve patients at the highest level. We aim to deliver a seamless, refined environment that prioritizes accessibility and premium healthcare amenities, reflecting outpatient facilities’ rising demand and critical importance in the evolving healthcare landscape,” said Garret Clifford with Okland Capital.
The property will be located at 3275 South Mercy Road in Gilbert. Okland Capital will develop a three-story state-of-the-art medical building in this booming town, where population growth has driven the need for increased medical service providers.
The building is situated near Dignity Health’s Mercy Gilbert Medical Center and Phoenix Children’s East Valley. It offers eight suites for medical providers to occupy. The property is open to all medical uses. The property is over 30% pre-leased, with two large tenants securing leases.
“Demand for medical office space has grown substantially, especially in the East Valley. Celebration Medical Center offers cutting-edge features that modern healthcare tenants need in these high-growth markets. The building’s proximity to Dignity Health Mercy Gilbert Hospital campus and other healthcare providers will enable the tenants to draw on other medical synergy nearby,” said Philip Wurth, senior vice president at CBRE.
Medical office leasing activity and tenant demand remain steady in the Phoenix metro, driven by the overall growth in the Valley’s population. Leasing activity remains high in the Class A medical building, with 60,062 sq. ft. positive net absorption so far this year, according to CBRE Research.
“By offering direct access from Mercy Road, prominent signage opportunities, and no use restrictions from the nearby hospital, this facility ensures a premium experience for medical providers and patients. With nationwide demand for healthcare real estate outpacing supply since 2021 and off-campus occupancy growing at twice the rate of on-campus facilities, this development will be instrumental in shaping the future of patient care and community-based health services in the region,” added Clifford.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
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