New York City's Upper East Side has been the site for healthcare-based development since 1865, and today that's no different, as surgery centers and medical office buildings spring up around the area, the Commercial Observer reports.
What you should know:
1. Landlords are remodeling existing developments into surgery centers and medical office building developments.
2. Health systems, too, see the value of establishing a center there. New York City-based Memorial Sloan Kettering opened a 16-story, 179,000-square-foot surgery center with 12 outpatient-focused operating rooms.
3. A landlord recently converted an old movie theater into a medical-focused space, which an unnamed ASC has leased, and a national realtor is currently searching for a medical office space tenant.
4. Cushman & Wakefield broker Mark Weiss did express concerns that developers need to make efforts to understand the infrastructure needs of the market or their efforts will be frivolous.
"They're trying and, in many instances, they're doing it without great knowledge of what their tenants will be," he said. "It's a market that's forming and taking shape, but unfortunately it's a lot of trial and error."