RANCHO SANTA MARGARITA, CA—Smart doctors are figuring out how tomaximize their office space and partner with otherpractices to get the most bang for their healthcare realestate buck, Cypress West Partners'partner Jeff Johnson tells GlobeSt.com. After thefirm was chosen by Orlando based CNL Healthcare Properties to manage athree-building medical-office campus totalingapproximately 140,000 square feet in Henderson, NV, we spokeexclusively with Johnson about new trends he's noticing in thehealthcare real estate sector and the challenges and opportunitiesin managing those assets.

GlobeSt.com: What new trends do you see emerging inthe healthcare real estate sector, particularly withMOBs?

Johnson: We're seeing larger spacerequirements and longer-term leases. Three yearsago, our average lease was one to three years; for the last twoyears we've been giving five-year leases and, more recently seven-to 10-year leases. So, things are changing in that respect. There'sbeen more efficient use of space by the doctors, who have figuredout how to work in this environment. They're taking offices out andputting in more exam rooms. Instead of 1,500-square-foot to2,500-square-foot spaces, they're renting 3,000-square-foot to4,000-square-foot spaces. Doctors are getting together to createlarger practices, and hospitals are combiningpractices as well.