Widening Spread Between On- and Off-Campus Medical Office

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The spread between on- and off-campus medical office product continues to widen in San Diego, according to research from Cushman & Wakefield. The spread is the result of the age and quality of available product. Many healthcare providers are looking for opportunities to move treatments to an off-campus setting, but there is limited availability of product to meet these needs.

“Healthcare providers are increasingly focused on reducing the cost of care for both themselves and their patients by moving treatments from an inpatient, on-campus setting to an outpatient, off-campus setting, which is fueling demand for off-campus construction,” Joe Zurek, senior associate of the healthcare advisory practice group at Cushman & Wakefield, tells GlobeSt.com. “Although the highest rents are found at these new and often higher-end off-campus locations, the cost savings in terms of regulatory compliance, patient-monitoring, and facility overhead realized by moving off-campus more than justifies the rent, while also providing a premier services environment.”

Zurek expects this trend to continue as more healthcare providers look for spaces to move outpatient treatments. “As the healthcare industry’s continuum of care continues to incentivize more treatments off-campus and closer to the patient base, look for this demand trend to continue,” he says.