November 22, 2016

How Healthcare is Reshaping the Region’s Real Estate Market

Across the Lower Hudson Valley, many commercial real estate spaces are becoming healthcare centers. Some are becoming medical suites, while others are transitioning into walk-in centers. These new spaces are advancing the region’s commercial real estate market by filling spaces that have been left vacant since the recession. In Westchester County alone, more than half a million square feet of former business office space associates with healthcare use. If you are looking to lease, sell or buy real estate, commercial space for rent Westchester NY services will assist you.

Healthcare and real estate in the past

According to Howard Greenberg, commercial real estate expert in White Plains, office landlords never wanted medical tenants in their buildings in the past. In general, medical facilities require more parking than other uses. Furthermore, landlords worried medical tenants might not mesh well with the other tenants in a relatively corporate environment. This changed, though, because buildings still need tenants at the end of the day. There has also been a huge burst of medical use with these health groups and hospitals coming into the area. Looking for the right office space is easy with commercial space for rent Westchester NY services.

Healthcare in the present

Nowadays, hospitals are consolidating, outpatient facilities are growing, and neighborhood doctors are joining physician groups. Nurse practitioners are also playing more prominent roles in providing healthcare. Moreover, there are many benefits to medical tenants. They bring some stability for landlords because they often stay longer after making significant investments in their new spaces. An example is renovations. Although landlords pay for improvements for many new tenants, these tenants often carry a majority of those costs themselves. They do this because setting up their spaces is more expensive, requiring additional plumbing, sinks, walls, etc.

Healthcare centers across the region

Urgent care centers treat patients on an as needed emergency basis. These centers are spreading all across the region. The Urgent Care Association of America estimates that there are now close to 440 urgent care providers in New York State. In Upstate New York, this includes about 25 in Westchester and about 10 in Rockland. In Armonk, White Plains Hospital opened its first wellness and medical center in November. The hospital, a 24,000 square-foot facility, expands to northern Westchester. This facility offers a broad range of clinical services, such as urgent care, primary care, obstetrics, orthopedics, and gynecology. Moreover, the Manhattan-based Hospital for Special Surgery announced recent plans to open a 50,000 square-foot outpatient center to the former IBM home at 1133 Westchester Avenue.

Medical center developers are working on and searching for other opportunities to continue the growth of health care centers across the region. It’s not only smart, but it also creates a highly improved experience for many people in need of healthcare services. The Professional Services team with the Rakow Group has been helping companies lease, sell, and buy commercial real estate for the last 30 years. With all the new changes happening in healthcare in the Westchester region, we are your go-to team to assist you with any and all of your real estate needs. Call us at the Rakow Group today for  our commercial space for rent Westchester NY services: (914) 422-0100.