INCREASED CONSOLIDATION: Pandemic pressures will serve as an accelerant in the existing trend of medical consolidation. Small to mid-size practitioners have, over time, elected to merge with larger organizations for stability and access to more resources.
QUALITY CREATES OPPORTUNITY: New occupiers of all sizes are looking to offer a new level of care to their patients and staff. Newer vintage, Class A, and well-amenitized space is limited which is spurring developers and investors to explore opportunities to create and improve medical space.
INVESTMENT: The COVID-19 pandemic has intensified investor interest in MOB throughout Greater Los Angeles. Developers recognizing this interest have proposed over 2.25 million sq. ft. of new medical office and general healthcare product in response.