Lease Expands Hospital Outpatient Facilities

HILO, HI-Hawaii Health Systems Corp. has signed a 10-year, $8 million lease for 22,751 sf of medical building space to expand it outpatient facilities, according to PM Realty Group. Matthew G. Bittick, a senior vice president with PM Realty Group’s Pacific Rim division, reports that the healthcare system’s new lease is indicative of what’s happening in the medical office space market in Hawaii.

“Hospitals on the outer islands seem to be at full capacity and are looking to place outpatient services in medical office buildings,” Bittick says. Hawaii Health Systems Corp., which is the nation’s fourth-largest public hospital system, will expand its outpatient services from Hilo Hospital at 1190 Waianuenue Ave. to the new freestanding facility at 45 Mohouli St.

Bittick represented the landlord, Glacs LLC, in the lease. Hawaii Health Systems Corp. represented itself.

The tenant is a public benefit corporation of the state of Hawaii. As the state’s community hospital system, it provides healthcare, particularly in rural locations where private hospitals are unavailable or unable to service patients. HHSC will be the sole tenant of the Hilo Medical Building, which was built specifically to accommodate a medical user.