A significant increase in medical office building construction means landlords might be willing to make the extra effort to sweeten the deal to ensure that physician practices will fill the space. And it might not be a bad time for a practice to sell an existing property, either.

Buildings are going up left and right, and there are lots of opportunities in the marketplace, said Paul D. Heiserman, senior vice president of health care real estate with Equity, a services firm based in Columbus, Ohio.

No organization issues an official report on medical office building activity, but major real estate companies say they believe new buildings are going up faster than ever. Sales of existing buildings are highly active as well.

According to a Jan. 11 report from Colliers International, a global real estate company, 33.7 million square feet of medical office building space was under construction across the country in the third quarter of 2012. A survey of 156 health care real estate developers released in December 2012 by Newmark Grubb Knight Frank, a brokerage based in New York, found that 65% said development would be higher in 2013 than in 2012.

Medical office building industry experts say the numbers indicate that future construction will be much greater for the foreseeable future than the 7 million square feet built in 2010, as reported April 21, 2011, by the Urban Land Institute, a nonprofit research organization.

A previous pre-recession high was the 13.7 million square feet added in 2005, according to data from Marcus & Millichap, a national real estate brokerage firm based in Calabasas, Calif.

The recent burst in construction is believed to be a result of several factors. One is demand that built up during the 2007-09 recession, when some projects stalled or never got started, said K.C. Conway, Colliers executive managing director of real estate analytics, who wrote his company's report.

Also playing a role was the 2012 U.S. Supreme Court ruling upholding the Affordable Care Act and the certainty that millions more people will be added to insurance rolls in the next few years. Investors, including many real estate investment trusts, developed a keen interest in medical office buildings. Duke Realty, a real estate developer and manager based in Indianapolis, reported in January that it expects more building as high-acuity and emergency services increasingly move off of hospital campuses.

Hospitals are staking their claim in their geographic areas by creating new buildings and putting their brand name on the sign, said Philip J. Camp, a principal with Hammond Hanlon Camp, a health care investment banking firm based in New York.

In a turbulent real estate market, medical office buildings, a historically stable investment, became extremely attractive to investors looking for safe places to stash their cash. The delinquency rate for commercial mortgage-backed securities was 9.2% for the general office market in 2012, according to Marcus & Millichap, but only 3.3% for medical offices. Landlords of empty retail properties, especially those ravaged by the closings of big-box chains such as Circuit City and Borders, are making deals to have those spaces retrofitted into medical office space, Duke Realty reported.

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Construction booming in medical office building market ...

A downtown office building with six off-street parking spaces could go on the auction block in April as part of Yellowstone Countys courthouse remodeling plan.

Commissioners on Tuesday adopted a resolution of intent to sell its two-story brick building at 214 N. 24th St. to the highest bidder and to set the minimum price at $320,000.

We believe the property would be a hot property, said Dan Schwarz, chief deputy county attorney. The county already has received some interest in the property, which is near the new federal courthouse, the county courthouse and city hall, he said.

The commission will hold a public hearing March 11 on the proposed sale. If the commission decides to proceed, it will sell the property during an auction April 1 at its board meeting.

An appraisal of the property by Charlie Hamwey, of Real Estate by Hamwey, estimated the fair market value at $293,000.

The 1915 building has 2,603 square feet of usable space on a 7,000-square-foot lot in the Central Business District. Hamwey said the building needs some updating, including improvements for meeting requirements of the Americans with Disabilities Act.

Sale proceeds, commissioners said, would go toward construction of a new building at MetraPark for the countys Extension Service. The county had considered relocating Extension from the courthouse to the brick building but decided MetraPark would be a better location for the agency.

Remodeling costs for Extension to move into the brick building would be between $300,000 and $400,000, said Commissioner Bill Kennedy.

Selling the brick building would be the first step in the countys plan to renovate some of the courthouse to make more room for the County Attorneys Office.

Also on Tuesday, the commission approved holding an election on whether voters want to establish and fund a Yellowstone County Government Study Commission. The issue will be on the June 3 primary ballot. No one spoke at a public hearing on the matter.

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County proceeding with plan to auction downtown office building

Sun Life Financial Inc. is going to move out of the Toronto tower that has been its head office for 30 years, a sign of what many real estate experts say is the slow migration of the countrys biggest financial district.

The insurer told employees Monday that it plans to move its downtown work force of roughly 1,400 people to One York Street, a new building that will open in 2016 near the citys waterfront, south of the bustle of the traditional financial district.

Sun Life will take a 30-per-cent stake in the building, which is expected to cost about $375-million to build. The other partners are Menkes Developments Ltd. and the Healthcare of Ontario Pension Plan (HOOPP).

The move comes as a boom in office construction across Canada slowly reshapes the downtown cores of major cities.

Calgary and Vancouver are also seeing high amounts of construction in and around their business districts, posing a new challenge to older towers.

The building frenzy is occurring despite a demand for office space that softened in 2013. Vacancies are forecast to rise notably this year on a national level.

Nationally, there is a 22-million-square-foot development pipeline of new buildings under construction, representing about 4.5 per cent of existing inventory, Royal Bank of Canada analysts say, adding that they are almost certain that supply will exceed absorption over the next one or two years.

In Toronto, the traditional bank towers have long been considered the safest investment for commercial real estate owners because of their low vacancies and high rents. But thats starting to change as a number of splashy new office towers are built. Rental growth is likely to stall and some of the older Class A towers will likely have to make significant investments in building improvements, along with a reduction in their rents and significant increases in their leasing incentives, RBC real estate analysts wrote.

Royal Bank itself is moving more than 4,000 employees to a new building by the waterfront, which will become the headquarters for its Canadian banking business, starting later this year.

Torontos downtown office sector, which pulled through the financial crisis in decent shape, had its poorest results since 2003 in the fourth quarter of last year, according to brokerage Avison Young. The average availability rate downtown is 10.1 per cent, while King Street and Bay Street, traditionally the two most prestigious addresses for business in Toronto and arguably all of Canada have availability rates of around 11 and 12 per cent, it says.

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Sun Life moving away from Bay Street, leading a shift from Toronto's financial district

This is a rendering of the proposed Legislative Office Building to be built next to the Minnesota State Capitol in St. Paul. (Courtesy of Minnesota Department of Administration)

A former state lawmaker said Monday that he will appeal a decision from earlier this month that threw out his suit seeking to stop construction of a new state Senate office building near the Capitol.

Former state Rep. Jim Knoblach said he'll ask for an expedited review by the Minnesota Supreme Court of the ruling Feb. 7 by Ramsey County District Judge Lezlie Marek.

Knoblach contends the authorization for the $63 million building and $27 million parking ramp should not have been included in the tax bill, but Marek found the building project and tax bill were sufficiently linked and dismissed Knoblach's suit.

The project has been a partisan lightning rod at the Capitol, with the Democratic majority arguing it will provide needed space for senators displaced by renovations to the Capitol, and Republicans arguing it's too expensive and hasn't received enough public scrutiny.

The project needs approval in the House Rules Committee in order to proceed.

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Suit to stop Senate office building construction to be appealed

BUILDING PERMITS

Building construction permits over $10,000 in value that were approved in Boulder between Feb. 10, 2014 to Feb. 16, 2014. Listed below are: the case number; address; total project valuation; owner name; contractor (if applicable); and description.

PMT2013-04293 1064 13th St.; $744,600; 1064 13th ; AGR Building Inc; Conversion of the 34-occupant fraternity building to an eight-unit apartment building. Each unit to contain four bedrooms and two full bathrooms. Two unit types, average unit size is 1,369 square feet. Remodel of 12,400 square feet and excavation of basement area to create an 800-square-foot long-term bicycle storage/mechanical room. See LUR20103-00013 for supplemental information.

PMT2013-06932 5271 E. Euclid Ave.; $55,485; Howard Singer and B. Peckler Sing; Silver Lining Builders; Remodel to single-family dwelling to include remodel of kitchen, relocation of bath and bedroom to create master suite with walk-in, relocation of another bath, with creation of mudroom and new mechanical/laundry room. Interior bearing wall to be removed and beam to be installed in attic per engineer's specifications. Work to replace heating system included in PMT2013-06930 (flood recovery permit).

PMT2013-06947 1390 Fairfield Drive; $125,000; Justin and Michelle Kalinski; St. Vrain Builders; Two-story addition to single-family dwelling. Addition to include garage with master suite above. Scope to include reconfiguration of main level bath and small addition to main level to locate new stairs, new furnace and water heater, new kitchen island, and all assoc.mechanical, electrical and plumbing.

PMT2013-06975 4595 Squires Circle; $75,000; Seth Allen; Pine Construction Company; Remodel and addition to existing single-family dwelling. Basement addition of 114 square feet for enlarged office and bathroom. Main level addition of 160 square feet for enlarged bedroom and bathroom. Remodel of 210 square feet for new kitchen and revisions to existing baths. Includes MEP.

PMT2013-06987 3845 Lakebriar Drive; $19,500; Carolyn Paul; Harrington Stanko Construction; Reconstruction of two story deck/porch with addition of unfinished basement space below.

PMT2013-07115 850 S. 46th St.; $141,841.00; Jason and Mollie Shatek; Addition (902 square feet) and remodel (330 square feet) of existing single-family dwelling, and addition of 480-square-foot attached garage. Scope of work includes creating a second story on south side of existing home. Attached garage on ground level, with additon above. Work includes all associated MEPs.

PMT2014-00114 1642 Pearl St.; $16,975.44; Sadhu Denver ; Van Matre Construction LLC; Interior tenant remodel to add new interior partition wall to create two retail spaces with shared restrooms. Structure only, no MEP.

PMT2014-00190 3434 47th St.; $19,350; 3484 Diagonal ; TLM Construction Services LLC; Minor tenant remodel to add one new compliant bathroom, washer/dryer-laundry area, new dishwasher area in lounge, and new window opening.

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Boulder building permits: Feb. 24, 2014

Boost for Cork as 50m Albert Quay development gets go-ahead

Tuesday, February 25, 2014

Planners have given the green light for a 50m, nine-storey office block which could deliver up to 2,000 jobs for Cork city.

Once complete in late 2015, Number 1 Albert Quay will have the capacity for 2,000 workers, with talks already under way with potential occupiers.

The project is one of the single largest private sector investments in the city in five years, and one of the largest office block developments in the city centre in decades.

The planning decision was heralded last night as a massive boost for the city centre, and for the city councils docklands regeneration plan.

Agriculture Minister Simon Coveney said the investment is a sign that Cork is moving in the right direction and an attractive place for business.

High-end office development and significant demand for it will revitalise Cork city centre and provide an additional economic boost to the area, he said.

Cork Chamber chief executive Conor Healy said as well as the boost from the construction jobs, the project would deliver a lasting benefit in terms of sustainable jobs.

This project will give the whole city a economic lift, he said.

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Boost for Cork as 50m Albert Quay development gets go-ahead

CARPENTERSVILLE Construction will start in April on a $6.5 million plan that gives new buildings to District 300 administrators and Oak Ridge School students, despite objections from skeptical parents and district employees.

After numerous roll calls on Monday, board members from the Carpentersville-based school district unanimously endorsed building plans and approved two contracts that put Elgin-based Dewberry Architects in charge of designing the projects by the end of March.

Facing a room full of district parents and residents, board members attempted to quell concerns from the audience that the district developed the project in secrecy. The administration publicly unveiled the building project for the first time two weeks ago.

"We aren't taking this (project) lightly," member Susie Kopacz said. "We have done our due diligence, but we need to do a better job of communicating that to the public."

The building changes move the roughly 80 students at the alternative Oak Ridge school to the administration's Central Office in Carpentersville and give the students a permanent home for the first time since the program started in 1998.

Construction crews will start $1.42 million in renovations to the near 15,000-square-foot Central Office by April 15, with a targeted completion by late July, according to the architect contract approved Monday. The converted office building should be open to students by the start of the 2014-15 school year, district officials said.

Dewberry architects will simultaneously design a new 32,000-square-foot, two-story office building for administrators by mid-March. Crews would then start constructing the $5.07 million building on district-owned property near Jacobs High School in Algonquin by April 15.

Administrators will use Hampshire High School as a temporary office until their new building is ready sometime in early 2015.

During the meeting, numerous parents urged members to table the project until the public had more opportunities to review the proposal and assess whether the relocation projects were the best options for the district. Administrators earlier reviewed the options the district exhausted to find a location for Oak Ridge students.

Billita Jacobsen, a support staffer at Lakewood Elementary, questioned the district's priorities and said conditions inside the elementary school are deteriorating.

Continued here:
District 300 approves building projects

The developers of the proposed Baseline Zero hotel and office complex say they want to create a model of sustainability that will inspire other commercial developers to new levels of investment in energy efficiency, on-site energy production and support for alternative modes of transportation.

"We wondered, with new construction, how much further could you go?" said Bruce Dierking, who is developing the project with James Loftus through a group organized as West Baseline Investments LLC. "We're not NREL (the National Renewable Energy Laboratory), but we could push it as far as a private sector building could go. And could we be a catalyst for others?"

But many residents of the nearby Martin Acres neighborhood believe the project, which pushes against Boulder's height limit and seeks deep reductions in the normal parking requirements, is inconsistent with neighborhood values and the intent of the zoning code.

And as a likely employment center that could draw commuters in cars, they said it creates as many sustainability issues as it addresses.

Lois LaCroix, who lives "149 steps" and four houses from the proposed development, calls it "a wolf in LEED clothing."

The project is currently at the concept plan stage and could yet change significantly before the developers present it for site review. The plans presented to the Planning Board in January call for a four-story, 180,000 square-foot office building on the western portion of the three-acre site at 27th Way and Moorehead Avenue and a four-story, 70,000 square-foot extended stay hotel on the eastern portion. Both buildings would have two levels of underground parking.

An artist's rendering of the planned Baseline Zero project, (Courtesy Photo / Daily Camera)

The building will exceed Leadership in Energy and Environmental Design Platinum standards and achieve carbon neutrality by 2030, according to the plans. Some of the techniques under consideration to achieve that goal include extensive rooftop solar, on-site fuel cells that could provide power and hot water for the hotel, passive ventilation and cross-laminated timber made from waste wood rather than steel beams.

A creek runs through it

The Skunk Creek runs through the middle of the property. The developer says the creek, which currently enters and leaves the property in a pipe, will be restored as a natural wetland. Some neighbors worry about the possible displacement of flood waters, especially from the underground parking.

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Baseline Zero pitches sustainable development, but Martin Acres residents fear big impacts

Print Create a hardcopy of this page Font Size: Default font size Larger font size Dowagiac to get downtown medical building Dowagiac to get downtown medical building

Posted: Sunday, February 23, 2014 5:00 am

Dowagiac to get downtown medical building By DEBRA HAIGHT - HP Correspondent The Herald-Palladium |

DOWAGIAC - Downtown Dowagiac's landscape will change come spring and summer with construction of a $1.5 million medical office building across from City Hall at Front and Main streets.

Dowagiac City Manager Kevin Anderson reported that construction of the 12,000-square-foot building should start in early March and be done by mid-September. Work had been set to start in January, but harsh winter weather delayed construction.

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Dowagiac to get downtown medical building

While city officials tout increases in its tax base, new jobs and turning blighted land into parks as benefits of tax increment financing, opponents have risen to decry risks and what they see as low returns in Eau Claires use of an economic development tool widely employed by local governments.

The Confluence Project a $77.2 million development proposed for downtown Eau Claire using funds from government, private and donor sources is expected to be part of a tax increment financing, or TIF, district in which public money is used to pay for infrastructure with plans to repay that investment with tax collections from future development.

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Gain or gamble? Opposing sides in Confleunce Project debate do battle over TIF funding tool