PHOENIX-Though the Q2 2013 healthcare real estate vacancy rate of 19.3% could be considered somewhat high by some standards, according to Transwestern's recent Phoenix Medical Report, this number is at its lowest since 2008. The current vacancy rate is down from the 19.8% reported during the same time last year.
The report also notes that there were large disparities between on-campus versus off-campus product; while off-campus healthcare real estate had a 21.5% vacancy rate, its on-campus counterpart was more stable at 13.4%. The total inventory is 14.9 million square feet.
The report also cheered on the absorption rate of close to 41,000 square feet (bringing the first half of 2013 total to 91,089 square feet).
Another interesting aspect of this report is the bounce-back of asking lease rates. The rates, metro-wide, are at $23.60 per square foot, full-service gross, a 3.2% increase from the previous quarter.
Though the report predicts increased activity in terms of absorption during the second half of 2013, uncertainties over issues such as Medicaid expansion and reimbursements and implementation of the Affordable Healthcare Act mandates could impact growth in healthcare real estate.
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