Leasing Market for Medical Offices Hits Downturn

American Medical News reports that the real estate slump, combined with tighter credit, means that fewer medical office buildings are being built. But after a previous construction boom, there is still more supply than demand. According to the conclusions of a Medical Office Research Report performed by Marcus & Millichap reviewing the second half of 2009, rents are creeping downward, and vacancy rates are going up.
For physicians who rent space, this means it's a good time to look for a better deal. But those who lease to others might need to take extra steps to keep tenants happy. Many experts say it's a good time for renters to ask the landlord to renegotiate your lease, even if there is still time left on it. Landlords may be amenable to locking in a lower rate if the lease is extended. If the landlord won't lower the rent, physicians may be able to get lower property-related expenses or other perks.

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http://www.ama-assn.org/amednews/2009/12/14/bil21214.htm