ENCINO, CA—The medical office market in Encino is experiencing an uptick in demand. Recently, NAI Capital SVP Jeremy Barbakow closed seven medical office lease transactions in the market totaling more than 20,000 square feet, GlobeSt.com reports exclusively. According to Barbakow, the Affordable Care Act and the improved economy are driving the demand for medical office space.
“Since the beginning of 2014, there has been a significant increase in the demand for medical office space in the Encino/Tarzana market,” Barbakow tells GlobeSt.com. “Now that Obamacare is active and the economy has improved, doctors have a clearer vision of the future and now have the confidence to open new locations, expand their practices and the willingness to commit to signing long term leases.”
Three of the seven leases were signed at Rubio Plaza East, which is located at located at 16542 Ventura Blvd., in Encino, CA. Cardiovascular Consultants singed the largest lease for a 5,815-square-foot space, while Arkady Kagan M.D. signed a 3,047-square-foot lease and Mansouri and Curtin Inc. signed a 2,440-square-foot lease. Barbakow represented the landlord, Diamond Capital Group, in all three transactions, as well as Arkady Kagan M.D. CBRE represented Cardiovascular Consultants and Gold Leaf Group represented Mansouri and Curtin Inc.
The remaining four leases are also located along Ventura Blvd. Balanced Group Acupuncture signed a 945-square-foot lease with Packford Properties at the Encino Town Center, located at 17200 Ventura Blvd. B.A.S.E. Training & Physical Therapy signed a 2,096-square-foot lease with Packford Properties at Plaza del Oro, located at 17207-4 Ventura Blvd. Encino Surgical Center LLC signed a 5,000-square-foot lease with Peppertree Capital LP at 16260 Ventura Blvd, Ste. 800. B.H. Skin Inc. signed a 1,561-square-foot lease with HCP MOP California at 5400 Balboa Blvd. Barbakow represented the landlords Packford Properties and Peppertree Capital LP and tenant B.H. Skin Inc. Keller Williams Studio City represented Balanced Group Acupuncture; Told Properties Inc. represented B.A.S.E. Training & Physical Therapy and CBRE represented HCP MOP California, a healthcare REIT that recently bumped its credit facility to $2 billion. The seven leases have a total value of approximately $5.7 million.
“The Encino/Tarzana market has been and continues to be a very desirable location for many doctors because of its close proximity to Providence Tarzana Medical Center and Encino Hospital Medical Center, both prominent hospitals and medical facilities in the San Fernando Valley,” says Barbakow. “With the increased demand in this market, new medical building projects are now under development, including 18131/18555 Ventura Blvd., and the owners of existing medical properties have elected to improve their properties by renovating the common areas.”