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California Real Estate Journal: M.O.B. Rules for Developers

September 28, 2009

M.O.B. Rules for Developers
California Real Estate Journal
By Keeley Webster

...Even after the financial crisis put the brakes on commercial real estate development, medical office development kept going. For the first seven months of 2009, office building permit valuations totaled just $256 million statewide, a decline of 82 percent from the same period in 2008, according to the Construction Industry Research Board. In Los Angeles, office building permits declined 79 percent in the same period...

...When Delores Conway, director of the Casden Real Estate Economics Forecast at the University of Southern California, presented her office market forecast for Southern California at the end of 2008, every industry was bleeding jobs except for one: medical and medical-related professions.

According to another Marcus & Millichap report on national medical office development, that trend continued into mid-year 2009. About 52,000 positions have been created nationally in the sector so far this year, and another 200,000 workers expected to be added by year-end, the report states...