PHOENIX, ARIZ. (Jan. 3, 2024) – A robust medical office building market in Metro Phoenix, buoyed by the growth of its brokerage professionals, contributed to a fiscally fit 2023 for the Phoenix Kidder Mathews Healthcare Real Estate Services team.
The Metro Phoenix medical office building (MOB) market was vibrant during the third quarter of 2023. The direct vacancy rate was slightly lower from 12.5 percent in 3Q 2023 to 12.6 percent for 3Q 2022. Asking rates increased to $29.44/SF in 3Q 2023 compared to $27.89/SF in 3Q 2022.
As the Valley’s population grows, so does the demand for healthcare real estate. Closing the books on 2023, the Kidder Mathews Healthcare Real Estate Services team is celebrating a successful year. The team closed 200 deals (185 leases and 15 sales) totaling 884,500 SF.
“We’re firing on all cylinders, with each team member actively engaged and contributing with intention and attention to our unique capabilities,” said Senior Vice President Perry Gabuzzi. “We’ve identified opportunities to create value for our clients, by leveraging our unparalleled market knowledge through aggressive negotiation tactics and leasing strategies, creative and thoughtful marketing campaigns, and we’ve expanded our reach through focusing on the blocking and tackling of brokerage. We consistently strive to exceed our goals and we work hard while having fun together.”
Notable deals closed by the team in 2023:
Stapley Medical Center: 1840 and 1910 S. Stapley Drive, Mesa, Arizona; office to medical conversion, 180,000 SF; more than 57,700 SF of new, medical leasing in 2023, clinical spec suite planned for 2024.
McDowell Medical Center: 10825 W. McDowell Road, Scottsdale, Arizona; surgery center operator signed a 12,500 SF lease; the surgery center was built out and fully equipped at lease signing.
Paradise Valley Medical Office Building: 3805 E. Bell Road, Phoenix; sizeable renewal with a national healthcare provider for 17,250 SF.
In addition, the Kidder Mathews Healthcare Real Estate Services team grew to seven professionals, including the addition of Associate Zack Harris to assist with investment sales.
The rest of the comprises Senior Vice President Rachael Thompson; Senior Vice President Fletcher Perry; Senior Vice President Michael Dupuy; Associate Chad Sutton; and Client Services Coordinator Rachel Deckman.
Paradise Valley MOB: 3805 E. Bell Road, Phoenix
About Kidder Mathews
Kidder Mathews is the largest independent commercial real estate firm on the West Coast, with over 900 real estate professionals and staff in 20 offices in Washington, Oregon, California, Nevada, and Arizona. Kidder Mathews offers a complete range of brokerage, appraisal, asset services, consulting, and debt & equity finance services for all property types. The firm performs $12 billion in transactions, manages 53 million square feet of space, and conducts 2,800 appraisal, consulting, and cost segregation assignments annually. For more information, visit kidder.com.