Medical office space (MOB) in Southern California is in high demand, driven by demographic changes, evolving healthcare needs, and limited new construction. For healthcare providers and medical practices in San Diego, Orange County, and Los Angeles, these market presents unparalleled opportunities to secure strategic locations.
Here’s an in-depth look at the trends shaping the region’s medical office market and how The Ocean Company can help your practice thrive in this competitive landscape.
Why Medical Office Space Is in High Demand
The medical office market has remained resilient in the face of shifting economic conditions, bolstered by several key factors:
Aging Population:
By 2050, households with adults aged 65+ in San Diego are projected to grow by 8 percentage points, with similar trends across Orange County and Los Angeles.
This aging demographic drives increased demand for healthcare services, creating a need for more specialized facilities.
Outpatient Care Growth:
Advances in technology and patient preferences are shifting services from hospitals to outpatient facilities, fueling demand for well-designed MOBs.
Limited New Development:
New MOB construction across Southern California has lagged, with fewer than 300,000 square feet built in San Diego since 2021 and only 60,000 square feet currently under construction.
Convenience for Patients:
Healthcare providers are prioritizing locations close to residential areas to make care more accessible, especially in suburban neighborhoods.
Regional Trends in Medical Office Space
San Diego
San Diego’s medical office market is one of the most competitive in the region:
Vacancy Rates: MOB vacancy rates in San Diego dropped to 6.1% in late 2023, the lowest in over 20 years.
Development Pipeline: With limited new construction, areas like Chula Vista, Kearny Mesa, and East County are seeing increased activity as healthcare providers seek to meet growing demand.
Biotech and Healthcare Synergy: San Diego’s robust life sciences and biotech industries create unique opportunities for medical practices to collaborate with research institutions.
Orange County
Orange County continues to attract healthcare providers due to its growing population and affluent demographics:
Vacancy Rates: MOB vacancy rates stood at 11.7% in Q3 2023, reflecting steady demand.
Rental Rates: Average lease rates remain consistent at $2.82 per square foot per month (triple net basis), making it a cost-effective option compared to other regions.
Suburban Demand: Communities like Mission Viejo and Irvine are hotspots for new medical offices, as providers prioritize proximity to residential areas.
Los Angeles
Los Angeles boasts one of the largest medical office markets in the country, with diverse opportunities for healthcare providers:
Vacancy Rates: MOB vacancy rates in Greater Los Angeles declined to 10.6% in Q2 2024, with total availability at 12.4%.
Rental Trends: Average asking lease rates increased to $4.07 per square foot per month, reflecting strong demand for high-quality spaces.
Urban and Suburban Opportunities: From Pasadena to Santa Monica, Los Angeles offers a mix of urban hubs and suburban communities ideal for a variety of healthcare specialties.
The Benefits of Medical Office Space for Healthcare Providers
Investing in medical office space offers several advantages for healthcare businesses:
Purpose-Built Spaces:
Designed to accommodate specialized equipment, exam rooms, and waiting areas, MOBs enhance operational efficiency.
Stable Demand:
Healthcare services are essential and recession-proof, ensuring long-term occupancy and stable revenue for property owners.
Strategic Locations:
MOBs are often located near hospitals, residential neighborhoods, and transportation hubs, making them convenient for patients and staff.
How The Ocean Company Can Help
Securing medical office space in Southern California requires expertise and local market knowledge. The Ocean Company specializes in tenant representation and investment sales, ensuring healthcare providers find the right location for their needs.
Our Services:
Market Insights:
We provide detailed analyses of the medical office market in San Diego, Orange County, and Los Angeles to identify prime opportunities.
Strategic Negotiation:
We negotiate lease and purchase terms that align with your practice’s goals, helping you maximize your investment.
Tailored Solutions:
Whether you’re a small practice or a multi-specialty group, we customize our approach to meet your unique requirements.
Tips for Finding the Perfect Medical Office Space
Start Early: Begin your search well before your current lease expires to secure the best options.
Define Your Needs: Consider factors like patient demographics, proximity to hospitals, and space requirements for equipment.
Leverage Local Expertise: Partner with a brokerage that understands the intricacies of medical real estate in Southern California.
The Future of Medical Office Space in Southern California
As the population ages and healthcare evolves, the demand for medical office space in San Diego, Orange County, and Los Angeles will only continue to grow. Limited new construction and increasing competition make now the perfect time to secure your ideal location.
Secure Your Medical Office Space Today
If you’re ready to expand, relocate, or establish a new practice, The Ocean Company is here to help. With expertise in the Southern California market and a focus on tenant representation, we’ll guide you to the perfect space for your practice.
Contact us today to schedule a consultation and explore available medical office spaces in San Diego, Orange County, and Los Angeles. Let’s find the space that supports your growth and success!