Medvest & CG Properties Form Venture To Fulfill Demand
In commercial real estate, the tenant’s industry counts – and while most commercial space continues to be ill from a weak economy, medical real estate developments seems to have bucked the trend. To keep pace with today’s rising demand for healthcare property developments, Birmingham medical real estate company, Medvest has announced a new joint venture with local real estate investment firm, Capital Growth Properties – “Capital Growth Medvest.”
“The growth in healthcare facilities has been relatively constant, forcing us to expand along with it,” said Joseph Baugh, managing partner at Capital Growth Medvest. “To capitalize on this expansion, we recently brought in property development expert, Kathy Brewer.”
Located in a new, 3600 square-foot office location off of Acton Road – and with space to allow for additional staff hires in the future – Capital Growth Medvest has already been awarded the development of two medical office building (MOB) projects and an ambulatory surgery center with acombined value of over $13 million. The projects are located in Madison, Ala., a suburb of Huntsville, and Pensacola, Fla.
Medical office building vacancy rates are currently around 11% – approximately 30% lower than theoverall commercial market at over 16%. According to the National Association of Realtors® January 2012 Quarterly Market Survey, retail, industrial and office vacancy rates in Q4 2011 were 16.9%, 17.1% and 18.8%, respectively.
Driving the favorable trend in medical real estate is its swelling portion of US GDP spending, currently 17.6%, as the aging population continues to seek more healthcare. Additionally, patients are requesting newer and often more expensive services as they become available. These factors are providing an incentive to develop, finance and own medical real estate.
“While commercial real estate may continue to face challenges as personal savings continue to increase and financing remains difficult, the tailwinds brought by increased healthcare spending will continue to provide an advantage to industry specialists in the medical real estate space, such as Capital Growth Medvest,” says Brewer.
About Capital Growth Medvest
Capital Growth Medvest helps medical facilities operate efficiently through real estate development and funding support. Our management has been involved in well over $1 billion in healthcare developments and acquisitions allowing them to find solutions to the most complex needs. Capital Growth Medvest delivers the knowledge, relationships and resources to help you reach each medical facility’s goals. For more information, visit www.medvest.com.
Comments or Questions:
Joe Baugh: (205) 969-7140