CCIM.COM
January | February 2018 7
Cost of
Living
Diverges
in Top 5
U.S. Cities*
Medical Office
Building Forecast
* 100 = national U.S. average for the cost of living
Source: Sperling's Best Places
Victor
(buildings)
TMSK
Sylverarts
Healthcare Industrial Data Centers Multifamily Student Housing Downtown Office Suburban Office Hotel Retail
1
56%
2
53%
3
31%
4
31%
5
22%
6
18%
7
10%
8
8%
9
7%
New York City Chicago Boston Los Angeles San Francisco
180
312.9
110.9
112.4
101.1
169.9
268.8
124.7
166.2
314.1
93.3
272.6
604.1
115.3
110
Overall Housing Health
8.5 msf
CONSTRUCTION: New building falls
below the previous five-year average
for medical office in 2017. The
Midwest and Southern regions will
lead deliveries this year. Almost 9 msf
of space was completed in 2016.
40 basis-point decrease
VACANCY: Absorption is strong in 2017,
propelling the overall vacancy rate to
7.6 percent. The rate will stay
tightest in the Pacific Northwest,
Central Plains, and California regions.
In 2016, medical office vacancy
declined by 80 basis points.
0.8% increase
ASKING RENT: West Coast
regions delivered the highest
rents, with several
markets well above
$30 psf in 2017.
The average rent
moved up slightly
to $23.03 psf
nationally.
Top CRE Executives Select
Best Investment Choices
Source: DLA Piper 2017 State of the Market Survey
Source: Marcus & Millichap