Tech is Changing How Medical Space is Used

Krotts: “Physicians have realized that they can work around the fixed monthly cost of real estate by creating innovative ways to share work spaces, to be more efficient with the space they have, or to integrate technology to help them do all of the above.”

NEWPORT BEACH, CA—Today’s technology allows specialists in two different areas to share the same space and highlight different amenities appropriate to their patients—but that’s not all, Real Estate Development Associates’ CEO Jason Krotts tells GlobeSt.com. The firm is currently under construction on the Newport Heights Medical Campus, which will comprise two class-A medical-office buildings totaling 64,000 square feet here.

Bryan McKenney of CypressWest Partners, the listing broker on the property, tells us at the end of Q1, the MOB vacancy rate in Newport Beach was 4.7%—a really tight market, especially considering that the vast majority of the MOB product is so old. He adds that more than 75% of the current MOB product was built before 1990 and is lacking the technology and flexibility for today’s medical practices (e.g., surgery centers, general practices, radiology centers, etc.)