May 2018 – Greater Brisbane Professional Medical Space Overview

4 May, 2018 / Vanessa Rader and Jonathon Jones

As many smaller investors strive to find secure, high yielding investments; interest in slightly alternative asset classes has increased most notably over the past two years. The appeal of medical type premises being particularly high given their often high returns
and secure tenant type. These assets also are typically fitted out to a high standard meeting many regulatory measures pertaining to health and safety which are attractive to potential owners. Similarly when tenants commit to quality fixtures they seek longer lease terms improving an increased security of income.

As the population grows and ages, there has been an increased need for medical facilities keeping occupancy levels high and demand for new premises to grow. Many medical professionals seek to purchase properties to occupy to shelter from growing rents and other instabilities like known local development, demolition clauses etc. The assets which cometo market continue to be hotly contested despite dampening controls enforced by banks across most commercial markets particularly these more alternative asset classes.

Across the Greater Brisbane area there are 75 projects currently in the development pipeline. These are broadly categories as “Medical Suites”, which include smaller professional spaces often grouped together in strata titled buildings which often are highly owner occupied. “Medical Centres” being the larger facility which offers multiple doctors and professional services to rent out rooms or operate as one business. Lastly, “Hospital” development has increased over the past few years with many existing facilities undergoing renovation and expansion together with new private and public hospitals being developed.

 

 

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