A Commercial Bright Spot: Doctors Are Calling

Medical offices are a bright light in an otherwise less-than-sparkling commercial real estate market.

“There certainly are investors who want this type of property in their portfolio,” said Dan Fasulo, a managing director at Real Capital Analytics. “It’s kind of a recession-proof bet, if you will.”

One advantage that buyers and sellers of medical office buildings have is access to credit. Doctors are viewed as desirable tenants because they are unlikely to move. Plus, demand for office space is growing. The number of health care jobs is up 2.66 percent compared to a year ago.

“There is still real leverage out there, and there is still the ability to get these deals done, versus a standard office building or shopping center,” said Neil R. Shapiro, chairman of the health care finance group at the law firm of Herrick Feinstein in Manhattan.

Source: The New York Times, Alison Gregor (01/27/2009)