Forsyth County, Georgia – Central to the Cumming medical office submarket, located at GA-400 and Buford Road, is the not-for-profit Northside Hospital – Forsyth. The hospital was acquired in 2002 from Georgia Baptist and expanded to a medical campus that currently includes the 304-bed hospital, a Women’s Center and an advanced surgery tower. There are five on-campus medical office buildings totaling 370,221 square feet, all nearly 100 percent occupied. A sixth building currently under construction, Northside Forsyth MOB V at 125,000 square feet, is expected to be delivered in March 2018. The one remaining suite in this facility is currently under a Letter of Intent.
The overall submarket totals 708,845 square feet in 21 medical office buildings. QuantumCRE tracks specialty built medical office buildings that are generally 9,500 square feet or larger. During the past four years there has been one new building delivered each year, the latest being Forsyth Physician Center, which opened Third Quarter 2017. This 91,500 square foot, off campus Class A medical building is 100 percent leased, the largest tenants being North Atlanta ENT & Allergy and Resurgens Orthopaedics. A phase II, 3 story building is planned on adjacent property.
During the past four years, overall vacancy rates have remained below 5 percent. The vacancy rate for Third Quarter 2017 is at 3.9 percent and expected to drop a percent point by First Quarter 2018. Physicians looking to acquire space will have to look at smaller office buildings for adaptive reuse and/or retail locations. There are two medical office buildings under construction to be completed in 2018, which may help on the supply side. Northside Forsyth MOB V and the Grady Dental Care medical office building at 935 Buford Road is currently marketing about 11,000 square feet of available space. QuantumCRE anticipates announcements of new construction in 2018 with completion dates in 2019.
Rental rates are only reported in 3 of the 21 properties averaging about $25.00 per square foot. With limited historical available space and properties not being actively marketed, there is no reliable source for comparing historical trends for quoted rental rates. Most recent transactions in the newest buildings are reporting lease rates of over $26.50 per square foot. For comparison at mid-year, the overall Metro Atlanta average quoted rate was $21.64 per square foot and North Fulton/Forsyth averaged $22.59. These rental rates along with continued demand and limited supply would support new construction.
For a complete report of supporting data and/or request for a market study, please give us a call or email Richard L. Smith, Jr., CCIM. Quantum Commercial Real Estate can also provide full market research studies including available spaces, lease rates, operating expenses, sales comparable data, demographics, and tenant rosters on medical office buildings across the Southeast Region. Buy, build or lease, we work with healthcare professionals evaluating real estate options.
Quantum Commercial Real Estate (QCRE) is a full service commercial real estate firm offering Brokerage, Development, Investment, and Management services. With years of experience in healthcare real estate related transactions and locations in North and South Atlanta, QCRE has the expertise to assist you. For more information and to discuss your needs with a Quantum Commercial Real Estate Representative, contact 770-462-2002 (North Atlanta Office), 770-486-8200 (South Atlanta Office), or visit QuantumCRE.com.