Medical Office COVID-19 Impact Considered ‘Manageable’

Though COVID-19 will inflict some pain on the medical-office sector of commercial real estate, as it is for other industries, this building type is expected to bounce back relatively quickly, according to a Marcus & Millichap report.

Last year, there was six million square feet absorbed nation wide, and vacancy rates fell below their 9.7-percent 10-year average by 90 basis points, says the commercial real estate services firm.

The report said: “While the pandemic will affect health-related providers in the second quarter, the long-term impact of the downturn should be manageable. The buildup of work that will stem from practitioner closures and appointment cancellations will allow medical office tenants to shore up financials and avoid shuttering once the pandemic ceases.”