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The Veterans Administration has signed the largest medical office lease in San Diego history. The government agency signed a 100,000-square-foot lease at 8875 Aero Drive in San Diego, California, for a new outpatient clinic, which represents an expansion for the VA. The lease has a 20-year term and is valued at $148 million.

While this is an exciting milestone for the medical office market in San Diego, the lease transaction itself was challenging and took nearly four years to complete. The VA’s specific site requirements were the first set of challenges. Taking in parking and size details into account, there were only three sites that fit the VA’s needs when it put out its original request for space. “They put the requirement out and reach out to owners in the area that fit the general criteria,” Brandon Keith, SVP at Voit Real Estate Services, tells GlobeSt.com. “The first time the requirement came out to the public was in May 2015. Officials from the VA toured the property in the summer of 2015, and from that time frame to summer 2017, nailed down terms of the deal, and then went through congressional process.” In total, the process took until February 2019 to close.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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