Obama’s Medical Office Stimulus Plan
With the economy at low ebb, it’s tough going for Boston area office landlords as they try and figure out where their next tenant is going to come from.
But don’t despair, for President Obama’s new healthcare package could spark a surge of demand for medical office space, a new report finds.
Marcus & Millichap Real Estate Investment Services estimates 10 million square feet of new medical office space will be needed if the president’s new health insurance initiative gets through Congress this year.
Given the Boston area’s huge medical research and health care industry, we should get our share of that new space and then some.
The firm’s estimate is based on idea that millions of now uninsured Baby Boomers will be put on the health care rolls.That, in turn, will trigger the need for thousands of new primary care physicians – and millions of square feet of new medical office space.
Overall, medical offices have held up well during the recession, with a vacancy rate of 11.6 percent – compared to more than 15 percent for the traditional office market.