The healthcare market remains a strong one for commercial real estate developers, as new projects in Michigan and Minnesota prove.
Duke Realty, working with Marquette General Health System, recently celebrated the grand-opening of the $11 million Doctors Park medical office building in Escanaba, Mich. And Kraus-Anderson recently started construction on HealthPartners Riverway Clinic in Anoka, Minn. The developer is also nearing completion of HealthPartners Nokomis Clinic in Minneapolis, an 8,000-square-foot renovation of an existing medical facility.
These projects are just three examples of the steady stream of healthcare construction taking place across the Midwest.
And don’t expect a slowdown in this sector anytime soon. It’s true that consumers who are worried about their household budgets won’t schedule as many elective surgeries. But there are plenty of medical procedures that people have to sign up for, whether they’re feeling poor or wealthy at the time.
Michael Berne, senior managing director for Lee & Associates’ Senior Housing and Healthcare Group, agreed that healthcare providers are more active today when it comes to both ground-up building and renovations to existing facilities.
It’s made life busier – a positive thing – for developers across the Midwest, Berne said.
“We are seeing a very noticeable increase in healthcare activity,” Berne said. “We are not at the levels of 2006 yet, but compared to the last year or two, we are seeing a substantial increase in development in this sector.”
That’s good news for commercial real estate pros. This remains a challenging environment for commercial development. The industry, then, needs a strong healthcare market to help it survive these leaner times.
— Dan Rafter