Pennsylvania 2011 Market Report

The PA Commercial Real Estate Market Report is ready.  Please see the link below; the report was compiled by various NAI offices.  For more information please send us an email at Bcole@naikeystone.com or check us out on the web at www.Bryan-Cole.com

Interactive Brochure:

http://www.bryan-cole.com/ibro/marketinfo/pa/pareport2011.html

Bryan E. Cole | Team Leader

NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502

Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

Top Ten Requirements for Medical Office Space

Affordability
The number one factor affecting doctors’ decisions when deciding on medical office space is affordability. Recently, a large surgical practice in Orlando signed a long-term lease for 30,000 square feet in a new mixed use development project in South Orlando at $17 per-square-foot. This new leased space will also include an outpatient surgery center on the premises. Before signing this lease, this same practice was offered the same amount of medical space closer to a major Orlando hospital for $25 per-square-foot. Why pay $25 per-square-foot when you can go down the street and pay $17?

Accessibility
Doctors are looking for access to major road arteries and highways so their patients can find easily them. If a doctor’s office is tucked away somewhere off the beaten track or in the middle of a rural area their patient may have a more difficult time finding them and have to go through a mase of side streets or unfamiliar areas to find their office. After exiting the highway, doctors expect their patients to make less than two turns to find their offices. After all, as a patient they may not be feeling all that good in the first place. Why make their plight any more difficult if they can’t find their doctor?

Mixed Use Development/Modern Architecture
Often, physicians are now looking for mixed use development featuring more modern architecture. They want buildings that are appealing and inviting. Three new medical office building projects are The Wyomissing Corporate Campus in Wyomissing PA, and Meridian Place in Spring Ridge, Wyomissing PA, and Exeter Ridge, located in Exeter Township PA.  These are examples of prime pieces of real estate that could appeal to a medical user.

Parking Ratio and Parking
Most professional office buildings have a parking ratio of two to three parking spaces per thousand square feet. With patients coming and going throughout the day, doctors need to have at least four to five parking spaces per thousand square feet to avoid overcrowding. Since parking can be tight in the downtown corridor, doctors often shy away from downtown medical space. Reserved parking is also a nice plus for key employees and physicians. Covered handicapped pick-up and drop-off areas are a real asset, especially if there are associated outpatient treatment facilities.

Shell Space vs. Used Space
Although shell space may cost more in the beginning, it will end up saving the doctor a lot of money in the long run. With new shell office space you can do space planning/ design work to fit your own needs and patient flow. This way you won’t waste square feet. Used office space with existing layouts often can’t be adapted without expensive demolitions and remodeling. While this can be accomplished, there still remains the potential for poorly laid out space that doesn’t fit the needs required.

Proximity to Other Physicians
In a medical office building, doctors are often looking for proximity to other physicians who could inter-refer to each other. For example, a family medicine physician will frequently refer patients to other medical specialties such as cardiology or orthopedics. With the right synergy, all of the doctors are inter-referring and enhancing their practices.

Ancillary Services
After interviewing several doctors, the new buzz word is “Ancillary Services.” Traditionally, hospitals were the main benefactor of many of these services. Ancillary services include MRI’s, sleep labs, physical therapists, outpatient surgery centers, and imaging centers. Doctors are more recently looking for extra medical office space where they can install ancillary services and other diagnostic treatment areas.

Geographic Location
In the past, doctors needed to be close to the hospital to round on large numbers of inpatients and perform mostly inpatient surgeries. Now procedures are more frequently performed on an outpatient basis, and doctors can relocate their offices farther away from the hospital at usually lower lease rates. Many practices now have incorporated outpatient surgery facilities located at or nearby their office location.

Exclusivity
Willingness of the landlord to restrict leasing to other physicians of similar specialty in the same building is often requested. While many physicians view this as an important concession, it probably is not that important in the long run. After all, there is really nothing a physician group can do if a competitor wants to relocate across the street. This is probably more important in rural or less populated areas where a new hospital is being established.

Signage
Building monument or signage to distinguish your medical group or practice is an important feature. Local zoning laws often restrict the size and location of business signage in any given area, but often the developer can offer “top of building” signs for major anchor tenants.

This information was obtained by a outside source

Information Presented by:

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities. visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; representing buyer, tenant, and landlord representation throughout Pennsylvania

What is a Phase 1 Environmental Site Assessment?

 

A Phase 1 Environmental Site Assessment should be an integral step in acquiring commercial and/or industrial property.   So what is a Phase 1 Environmental Site Assessment, sometimes referred to as a “Phase 1 or a Phase 1 ESA”? 

A Phase 1 ESA is a report that summarizes a site visit and records review of a property and its surrounding area to determine if any additional environmental investigation is warranted to understand the liability risks associated with the identified property.  

Below is a quick summary of key activities generally associated with a Phase 1 report: 

PURPOSE

The purpose of a Phase 1 Environmental Site Assessment is to use a consistent systematic approach to identify any existing or potential environmental conditions that may be present or affect a real estate property. 

The process of completing a Phase 1 ESA has four components: 

  1. Records Review
    • Chain of title review. What has the property been used for in the past? Are there any uses that raise a red flag based on past usage?
    • Determine surrounding land use. This can be a very important part of the assessment as the risk of contamination can increase significantly if the surrounding area or properties have documented or potential contamination.
    • Historical aerial photograph review. A report will almost always include historical aerial photographs to review a time-line for development of the property as well as surrounding properties.
    • Agency contacts and related record searches. Agencies such as fire departments, local health departments, petroleum tank management associations, water departments, etc., generally are contacted in order to gather current and historical pertinent information concerning the property and the neighboring area.
  2. Site Reconnaissance
  • A visual inspection of the property and improvements plays an important role in a Phase 1 ESA.
  • The confines of the building(s) are inspected and property boundary measurements observed. The focus of a Phase 1 inspection is environmental and does not include the structure or any of the systems of the building
  • Photographs are taken of the property.
  • No physical testing or sampling is conducted during a phase 1 assessment
  1. Interviews
  • Interviews will be conducted with anyone who may have information that would help with the report. For example, past and present property managers, tenants and owners
  • If there is concern over surrounding properties, interviews may be conducted with people who have been or are involved with that property.
  • Agencies contacted above such as fire departments, local health departments, petroleum tank management associations, water departments, etc., generally are contacted in order to gather current and historical pertinent information concerning the property and the neighboring area.
  1. Report
  • Documentation. Findings, opinions and conclusions must be supported by documentation to facilitate the assessment.
  • Scope of Services.  The report will describe all services preformed in detail to allow for another party to reconstruct the work completed during the investigation.
  • Findings.  The Findings section indentifies known or suspected recognized environmental conditions.
  • Opinion.  Includes the environmental professional’s opinions of the impact on the property of conditions indentified in the Findings Section.
  • Additional Investigations.  The environmental professional should include an opinion if any additional investigations are necessary to further clarify any findings that may indicate there are environmental concerns.
  • Data Gaps.  Should there be any significant data gaps that affect the ability to evaluate the property these need to be indentified and commented on.
  • Conclusions.  Provides a summary all recognized environmental conditions connected with the property.

Information Presented by:

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities.  visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; representing buyer, tenant, and landlord representation throughout Pennsylvania.