The dedicated division was created to capitalize on recent growth in the medical office sector, according to medical office specialist Sonny O'Drobinak, who will head up the division with senior vice president David Gould. The division will offer brokerage, market analysis, occupancy planning, investment analysis, construction management and property management.
"A lot of doctors are starting to consolidate operations with other physicians or medical groups because it makes more sense and more of them are choosing to invest in real estate rather than pay someone else rent," O'Drobinak says. "While there is still leasing going on--primarily among smaller practices that don't intend to consolidate--the growth in the medical office space is primarily the result of historically low interest rates and the fact that medical professionals no longer want to pay high rental rates."
The division will launch with five brokers operating out of the firm's Walnut Creek, Pleasanton and Oakland offices. Gould tells GlobeSt.com the division was recently retained by an orthopedic group to provide financial analysis, site analysis, market analysis related to a building they plan to buy and renovate.
"Doctors are very busy people, often putting in 60 to 80 hours a week [and] real estate is complicated, expensive and involves long-term contracts," Gould says. "Given that there are more considerations, such as owning verses leasing, limited liability partnerships and Stark Law regulations, it's more important than ever for medical professionals to work with a broker that really understands medical office space."
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