Monthly Archives: February 2014

Aging Baby Boomer Population to Drive Medical Office Growth Through 2030

Although the full effect of the Affordable Care Act on the health care industry remains uncertain, the favorable demographic trends driving the industry’s growth through the long term are clear. The protracted growth in the older age cohorts, due to the aging baby boomer population, has long been anticipated and will result in substantial increases in demand for health care services during the next two decades.

According to the Census Bureau, the 65+ age cohort’s share of the total population will surge from 13.7% in 2012 to more than 20% by 2029. During this period, the 65+ age cohort will increase by an average of 3.0% per year, compared with an average annual growth rate for the total population of 0.7% during the same period. This growth will result in the number of people aged 65+ increasing by nearly 30 million by 2030.

The implications of this growth for the health care industry and the medical office market are significant due to higher medical usage rates among the older age cohorts. According to the Centers for Disease Control, the number of annual physician office visits per 100 people increases from 371 for the 45-64 year-old cohort to 624 among the 65-74 year-old population and 715 among the 75+ year-old population. Given the underlying demographic trends, the medical office market is poised to expand significantly during the next two decades in order to serve this rapidly growing, high-demand portion of the patient base.

For a detailed analysis of and outlook for the U.S. healthcare industry and medical office market, please see Colliers’ Medical Office Trends and 2014 Outlook report.

Richmond American Homes Plans $400k Homes for JAX Beach

Richmond American Homes, with about 20 developments in NE FL, has purchased 10 acres at South Beach Parkway in JAX Beach for $8M ($135k/u) where it plans to build Ocean Terrace, a subdivision of 59 homes starting in the $400s from 2,250 to 3,050 SF.  Roger Bull mentions it in his Sunday Notebook for The Florida Times-Union.

Cenveo To Lay Off 133 In JAX

Cenveo, the global printer, has filed plans with the state to close its plant at 5406 West First Street and lay off its staff of 133 workers.  Roger Bull of The Florida Times-Union has the announcement.

Stein Mart Closes Fernandina Beach Store

Stein Mart closed a disfunctional old store in Fernandina Beach, with 14k SF versus the current box prototype of 32k SF.  They also announce the closing of a Brentwood TN store but aggressive plans in 2014 for a total of 10 new stores in markets such as Las Vegas, Miami and Washington DC, while also relocating six existing stores in various markets.  The Florida Times-Union’s Roger Bull has the story.

Hit by Slowing Growth at Home, Chinese Investors Shift Billions to U.S. Real Estate – CoStar Group

From CoStar-
“Chinese investors broke sales records in their drive to purchase U.S. commercial real estate in 2013, and analysts expect they will remain active in the global market, with untapped billions more to invest in coming years.

The U.S. real estate market attracted $3.1 billion of capital from China last year — an increase of more than 900% from just $264 million invested in 2012, according Jones Lang LaSalle.”

Hit by Slowing Growth at Home, Chinese Investors Shift Billions to U.S. Real Estate – CoStar Group.

Life of the South Bldg. Trades for About $37/SF – CoStar Group

Life of the South Bldg. Trades for $3 Million – CoStar Group.

Colliers International Northeast Florida is handling the leasing of the building. View the brochure here: http://cdkn.reapplications.com/asp/filecabinet/Trans/006959/5696toemail.pdf

 

Regency Mall Purchased By NY Investors

Regency Mall, which General Growth paid $71.8M for in 1991 and dumped millions upon millions into for renovations since then, has traded at a price of $13M to some New York investors, Namdar Realty Group and Mason Asset Management.  The sale includes JCPenney, Belk (moving to a new store a few miles away) and the shops; it does not include the Sears, Dillards or their parking lot pads.  The mall is about 37% occupied today.  Roger Bull of The Florida Times-Union has the story.

Ares Commercial Sells ARIUM Atlantic Beach – CoStar Group

Ares Commercial Sells ARIUM Atlantic Beach – CoStar Group.

Lingerfelt To Manage 2.1 Million-SF JAX Portfolio – CoStar Group

Lingerfelt To Lease and Manage 2.1 Million-SF Jacksonville Portfolio – CoStar Group.  Great Win for Colliers Jacksonville…Congrats to Bob Selton, Chuck Diebel, Preston Phillips and Guy Preston as Lingerfelt awarded the leasing of 585,000 SF of office space to the Colliers Jax team.

Opportunity Awaits: Investment Advisor Sees Value-Added Real Estate Gaining Favor – CoStar Group

“A recent report by CenterSquare Investment Management argues that the search for value in real estate has shifted to a new phase in which investors must create property value through astute leasing and management to achieve better risk-adjusted returns.”

Opportunity Awaits: Investment Advisor Sees Value-Added Real Estate Gaining Favor – CoStar Group.