Studies conducted by Simone Realty, Inc find the expansion and consolidation of medical practices in central New Jersey has been fueling the depressed office market for more than two years. Office space that is fit out for medical use is in high demand and is commanding higher prices as smaller medical practices find it necessary to consolidate with larger practices to offset reductions in medical reimbursements.
While corporate space, large and small, is still struggling to regain the lower vacancy rates it experienced prior to the downturn of 2008, medical office has certainly been the bright spot in the real estate sector.
Additionally, as the larger practices acquire an appetite for greater market share, we are seeing the migration of these practices into the local market. This includes traditional acute care hospitals who now find it necessary to make themselves more accessible to the consumer by developing satellite out-patient facilities closer to the neighborhoods.
The new out-patient facilities include medical practices of nearly every description and are becoming more like retail stores in terms of location, accessibility, parking, and convenience.
Medical offices are traditionally more expensive to build than conventional offices, and the demand for medical office that are in “move-in condition” means that such spaces do not remain on the market for extended periods.
Expansion of medical facilities in the central New Jersey market include urgent care facilities, like HealthCare Express, which recently open a new state-of-the-art facility on Quakerbridge Road on the West Windsor-Lawrence border that can handle a wide variety of the community’s medical needs with its emergency room-trained physicians, x-ray department, and on-site laboratory.
Patients are finding the new urgent care facilities to be convenient, professional, and much less costly than other means of treatment for non-acute medical needs. It is expected that the trend toward urgent care will continue as the public becomes better acquainted with the convenience and the cost benefits of these facilities.
Simone Realty has been in the forefront of medical office development in central New Jersey and continues to seek new opportunities in this area. The associates at Simone have more than one hundred years of experience in commercial real estate with many new projects in the pipeline.
Simone Realty, Inc., 100 Federal City Road, Suite C101, Lawrenceville. www.simonerealty.com. 609-882-1105. See ad, page 44.