Focuses on the Office Visit
Redevelopment of medical office buildings has become a strong category as developers try to keep up with increased demand in part created by the Affordable Care
Act. But part of this redevelopment effort is dealing with older,
often obsolete properties that come with their own set of problems—particularly when providers are striving to improve
patients’ physical office-visit experience.
There are many issues with older medical office buildings that
don’t exist with new acquisitions, say Cypress West Partners’ Jeff
Johnson and Chris Cumella. The firm
recently acquired McHenry Medical
Building, a 62,000-square-foot, multi-tenant property in Modesto, CA, from Medical Surgical Associates
got for $9.45 million. It plans to invest more than $1 million in
initial capital improvements to the asset, which Real Capital
Analytics reports was completed in 1991.
When GlobeSt.com reported on the deal, Johnson said that
older buildings tend to be less efficient in their use of space, build-
ings systems are antiquated or nonexistent and the overall aesthet-
ics may not be appealing to today’s consumer. And from a capital
standpoint, Cumella added, you need to go in with eyes wide open
and be ready to spend money immediately to create value.
“One of the first things we look at is energy efficiency and
patient comfort. Building systems need to be reliable and function at a high performance level since medical buildings generally have high traffic counts,” said Johnson. “In addition to system
performance, we’ve been paying closer attention to the look and
feel of our buildings to make them more inviting and improve the
overall patient experience.”
Some of the major issues with older medical office buildings
include aging infrastructure. Specifically, upgrading the infrastructure so it complies with changing standards for medical
spaces and updated energy codes, relates Michael G. Thoresen,
a vice president at Syska Hennessy Group.
“Medical programming is driving more diagnostic and procedure spaces with requirements for emergency power, and health-care-level air conditioning and filtration to medical office space,”
Thoresen points out. He notes that as infrastructure equipment
ages, requires more maintenance and is more prone to failure,
owners are replacing hardware and systems.
By Natalie Dolce
Whether it’s issues with modernizing older
medical-office buildings, making space more
efficient, updating healthcare delivery or
using new technology, owners and operators
have much to consider when it comes to
a physical office visit