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Third Quarter Market Report Released

Posted: November 16th, 2010 | Author: | Filed under: Trends | Tags: , , , , , | No Comments »

We have released our Q3 2010 market report for the Silicon Valley Medical office space market. Vacancies continued to rise slightly to about 8% across 385 buildings. Rents remained fairly steady at an average of $2.44 psf/month. Despite the gloom and doom that hangs over the economy, there are signs of improvement. May of Silicon Valley’s largest companies are flush with cash, and continue to hire. There is also activity in the venture-backed world and competition for engineers at many of Silicon Valley’s tech companies is fierce right now as evidenced by Google’s 10% across the board pay-raise (30% for execs) and year end bonuses.

In the medical office market though, if you are a tenant, it continues to be a good time to lease or purchase. Interest rates are low on the purchasing front, and landlords are being aggressive with rent concessions and improvement allowances on the leasing front. It’s not quite a landlord’s market, but some sub-markets have experienced great leasing activity this past quarter, while others such as the El Camino/Mountain View and Palo Alto markets never really went down.

If you would like to receive the full quarterly report, sign-up on our website to receive it, and you’ll also receive next quarters report when the time comes around.


Second Quarter Market Report Released

Posted: July 29th, 2010 | Author: | Filed under: Leasing, Trends | Tags: , , , , , | No Comments »

We have released our quarterly market report for the Silicon Valley medical office market. Vacancy rates remain fairly steady, slipping from 7.82% from 7.51%. Rental rates went from $2.55 gross in the previous quarter to $2.39 gross. Despite the up-tick, the medical market continues to benefit from far better fundamentals than the generic office and R&D market which are suffering from historically high vacancy rates. Even the most seasoned office landlords we know feel less optimistic about the future than at anytime they did before in Silicon Valley when the market slumped.

We also continued to add properties to our database, and we now track over 375 buildings.

If you would like to receive the full quarterly report, sign-up on our website to receive it, and you’ll also receive next quarters report when the time comes around.


US Faces Shortage of Doctors; 150,000 Short in 15 Years

Posted: April 13th, 2010 | Author: | Filed under: Trends | Tags: , , , | No Comments »

The Wall Street Journal is out with an article detailing the burgeoning demand for doctors in the United States. By some estimates, the United States will face a shortage of 150,000 doctors in fifteen years. Healthcare reform is anticipated to increase the demand – primarily at the PCP level – and medical schools are having trouble keeping up.

At current graduation and training rates, the nation could face a shortage of as many as 150,000 doctors in the next 15 years, according to the Association of American Medical Colleges.

That shortfall is predicted despite a push by teaching hospitals and medical schools to boost the number of U.S. doctors, which now totals about 954,000.

The greatest demand will be for primary-care physicians. These general practitioners, internists, family physicians and pediatricians will have a larger role under the new law, coordinating care for each patient.

The U.S. has 352,908 primary-care doctors now, and the college association estimates that 45,000 more will be needed by 2020. But the number of medical-school students entering family medicine fell more than a quarter between 2002 and 2007.

Some other notables from the WSJ article:

  • The law offers sweeteners to encourage more people to enter medical professions, and a 10% Medicare pay boost for primary-care doctors.
  • As of last October, four new medical schools enrolled a total of about 190 students, and 12 medical schools raised the enrollment of first-year students by a total of 150 slots, according to the AAMC. Some 18,000 students entered U.S. medical schools in the fall of 2009, the AAMC says.
  • There are about 110,000 resident positions in the U.S., according to the AAMC.

The following graphic produced by the WSJ also highlights where the shortage falls:

[via WSJ]