Medical office buildings (MOBs) are emerging from the shadows of CRE. Newport Beach, CA-based Real Estate Development Associates (REDA) is developing a 64,000 SF, two-building MOB, in Newport Beach, that provides doctors an opportunity to expand their practices.
Connect Media asked REDA Principal Jason Krotts what’s driving this new generation of MOB’s in our latest installment of 3 CRE Q&A.
Q: Why are MOB’s gaining in popularity, and why are they attractive CRE investments for doctors?
A: Physicians have realized that real estate is a fixed monthly cost, and they’re learning to leverage technology to be more effective in their business operations. REDA is developing its Newport Heights Medical Campus to provide the infrastructure and technology base so physicians can more efficiently run their businesses in this modern day of technology and instant gratification.
Q: What factors are driving development of MOB’s in Orange County?
A: We’re noticing an extremely limited supply of medical offices in the area. In fact, vacancies are at 4.7% in the region, and we know that’s very tight and warrants new product. To that point, this new campus is going to provide all types of out-patient medical practitioners the space needed to start or expand their practice, or make it more efficient to serve the community.
Q: How do advanced MOB’s differ from previous generations of facilities? What are some examples of the advantages they offer?
A: These buildings are brand new, which is a major opportunity for the medical community in the area because more than 75% of the medical office space in the area was built before 1990, and is therefore outdated in technology, flexibility of floor plans and other internal systems. There was a bit of product that was built nearby in the ‘90s, but it’s 100% full. Even the few other old spaces that have been renovated don’t offer the opportunity that this Newport Heights Medical Campus will provide. Gone are the days of storage rooms and filing cabinets, now that space can be used for patients or other necessary equipment.
Among the advantages are:
One example situation is of two doctor friends: One is a dermatologist and the other a plastic surgeon, and they keep office hours on separate days of the week. The technology/bandwidth and flexibility that REDA is building into the property lets them share the same space.
The waiting room TV can be switched to display content appropriate to whichever doctor is on duty that day, patient data is kept private but accessible via different computer log-ins to the Cloud, and even the artwork can be digitally changed to match each practitioner’s style.
For comments, questions or concerns, please contact Dennis Kaiser
Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services.
In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company.
In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix.
Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator.
Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements.
Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.