Rarely in commercial real estate do the stars align so perfectly as with the heightened appetite for retail space due to the explosive growth of physician groups, urgent care centers and other health services.

Amid robust medical spending, health care executives have reached a consensus that it is vital for medical professionals to be closer to their patients, especially the growing number needing services connected with aging.

The impact of growth in the industry on existing medical office space has been predictable. Vacancy rates have plunged, cap rates are dropping and values are beginning to soar. The prognosis is attracting increased capital by investors who are coming to appreciate the outlook for this sector.

For example, in its first foray into medical office investment Starwood Capital Group recently acquired 72 medical office buildings totaling about 4.1 million square feet for nearly $1.4 billion. Continue Reading...