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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.


The Silicon Valley’s Perspective on the Massive Healthcare Bill…

Posted: March 31st, 2010 | Author: | Filed under: News, Trends | Tags: , , , , , , , , | No Comments »

With so much at stake given the recent healthcare legislation, it’s interesting to consider a local perspective on the matter. The Business Journal recently published an article with the opinions of some of the Bay Area’s most influential healthcare leaders. For the most part, many are holding their breath awaiting further clarification on Bill’s policies and overall implications. The following is a glimpse of their perspectives. 

Jane Ogle, chief operating officer of the Santa Clara Family Health Plan, “called it 100 years overdue”. She expressed disappointment that the number of the Law’s provisions, including the establishment of insurance exchanges and the expansion of Medi-Cal, don’t take effect until 2014. But she called “huge” the protection given to the Healthy Families Program that provides low-cost insurance to children and teenagers who don’t qualify for Medi-Cal.

Paul Beaupre’, CEO of Good Samaritan Hospital, said that right now the federal government is talking about insuring people at the same rate as MediCal, the states program to cover the poor. But in California, this doesn’t ensure access to care, he said. Many physicians won’t accept these rates, which are some of the lowest in the nation for medical reimbursement. He added that the bill is an important first step, nonetheless. He hopes small business owners will finally see those premium increases subside.

Jim Dover, CEO of O’Connor Hospital, explained that when the expanded coverage begins in 2014, hospitals will see fewer uninsured patients in their emergency rooms. At O’Connor, which is run by Daughters of Charity Health System, about one third of those currently walking in through the doors have no insurance.

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