Medical office buildings are outperforming the overall office market, boasting higher rents and lower vacancy rates.
In other words, medical office buildings, or MOBs, comprise a very healthy asset class in the Denver area and in Colorado.
“The demand for medical office building space continues to expand in metro Denver by way of population growth, a rising older population and a greater portion of people with insurance,” according to a CBRE report.
Next month, the Colorado Real Estate Journal is sponsoring the largest health care/medical office building conference in the Rocky Mountain region.
The 2018 Health Care & Medical Office Buildings Conference & Expo will be held from 7 until 11:45 a.m. April 17 at the Hyatt Regency Aurora-Denver Conference Center and is expected to draw more than 350.
Panel members and speakers will address medical office building development, investments, leasing, construction and design.
For those who qualify, the conference provides four hours of continuing education credits.
Panel topics at the MOB conference include:
- What Are Colorado’s Health Care Systems Planning for the Future?
- Design and construction;
- Developments and investments; and
- The state of the industry, investment recap and health care property outlook.
Lawyer Amy K. Hansen, a shareholder at Polsinelli, will give the opening remarks and keynote address.
Panelists and moderators for the MOB conference include:
- Kevin Kucera – director of real estate, HealthONE;
- Jeffrey A. Crawford – principal, RMI Capital Management LLC;
- Scot Brooks – director of real estate management & construction, Centura Health Service Center;
- Courtney Hanfland – system director, real estate transactions, Catholic Health Initiatives;
- Clayton Mitchell – vice president (interim), national facilities services, Kaiser Permanente;
- Jerry Heberlein – director of preconstruction – health care, Hensel Phelps Construction;
- Bruce LePage, LEED AP – design phase executive, Mortenson;
- Rebecca Brennan, RID | CID | CHID | EDAC | IIDA | LEED AP – principal, Design Studio Blue;
- Timothy G. Davis, PE – senior account executive, Energy & Facilities Solutions, McKinstry;
- Christopher R. Bodnar – vice chairman, Investment Properties, CBRE;
- Terrence Pace – broker, healthcare solutions specialist, JLL;
- Perry Bacalis – broker | Denver | medical, Carr Healthcare Realty;
- Naum Nasif – senior associate, CBRE
- Stuart Thomas – senior associate, Healthcare Practice Group, Cushman & Wakefield;
- Dann Burke – first vice president, Brokerage Services – Healthcare Real Estate, CBRE;
- Andrew Shearer – managing director of real estate development – COO, Development Solutions Group LLC;
- Tom Hulme – vice president of development & Leasing, HCP;
- Joseph Fogarty– vice president, investments, Healthcare Realty;
- Brian Spoerl– director, health care real estate development, The Opus Group; and
- Shane Seitz– senior investment officer, Ventas Inc.
The biggest challenge to the Denver area medical office building market may be its own success.
Lease rates are so high and vacancy so low that a lot of owners of MOBs don’t have much incentive to sell.
As the CBRE medical office building report put it: “Owners are holding on tight to their prized assets, so a lack of available for-sale product could slow investment activity in 2018.”