Medical Groups Increasingly Turning to Real Estate Ownership

I’m seeing great deal of this lately—business owners and medical groups taking advantage of favorable factors to diversify their investments to include real estate ownership. Often, this includes the very building that they currently occupy.  The article below highlights two recent examples from California (from the Sacramento Business Journal):

Owners/users snap up office buildings

“Real estate agents say more small business owners are capitalizing on relatively low real estate prices, motivated sellers and low interest rates to buy property rather than lease.

Such is the case in Roseville, where a medical group bought a 3,650-square-foot office building at 902 Cirby Way for $614,000. The buyer intends to operate a pediatrician office, said Tom Bacci, a Voit Real Estate agent who, along with colleague Jon Walker, represented the seller, Wells Fargo Bank. Another example is on Sun Center Drive in Sacramento, where a medical-billing company bought a 31,680-square-foot building for almost $2 million. Cushman & Wakefield handled that deal.

‘Owner/users are especially active in the buying market as they take advantage of competitive pricing on higher-quality properties,’ Walker said.

Health-related businesses are particularly active, and are leading the way, especially in Roseville and Rocklin, Walker added.”

(Taken in part from Sanford Nax’s article “Owners/users snap up office buildings” in the Sacramento Business Journal, August 31, 2012.)

http://www.bizjournals.com/sacramento/news/2012/08/31/ownersusers-snap-up-office-buildings.html