December 17, 2019
Chicago leads the nation for net absorption and deliveries of medical office product through the second quarter, CBRE says in a new report. The metro area recorded 915,000 square feet of positive net absorption during the year that ended June 30, significantly ahead of second-ranked Atlanta, which recorded 557,000 square feet during the 12-month period.
The demand led to a surge in product, as Chicago also led the nation in medical office building completions, with nearly 750,000 square feet in that time. No other market recorded more than 500,000 square feet. Despite the number of deliveries, demand drove vacancies in Chicago down to a healthy 10.1%, a notch below the national average of 10.3%.
“Chicago is one of the most competitive healthcare environments in the country, and systems are continually trying to increase market share by further penetrating and expanding within the communities,” said Jon Springer, Chicago-based EVP with CBRE.
Pictured: HSA PrimeCare’s medical office development in New Lenox, IL.
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