Tag Archives: #commercialrealestate

What is Causing the Demand for Medical Offices in Arizona?

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No matter what road you drive down in the valley in Arizona, you’re probably going to pass by a medical center. In fact, statistics show that in Maricopa County, there is 1 medical center (hospital/clinic) for every 14,694 citizens, which, in comparison to Los Angeles Count, which has 1 for every 22,276 citizens, goes to show how prevalent medical facilities are here. Despite the high numbers, demand is still increasing!

Arizona’s medical real estate market is experiencing a surge in demand, and it’s not by coincidence. The state’s aging population—one of the fastest-growing senior demographics in the nation—is significantly increasing the need for healthcare services. As more retirees choose Arizona for its climate and affordability, the demand for medical office buildings (MOBs) and outpatient facilities continues to rise. This demographic shift has created opportunities for developers and investors to meet the growing need for accessible, modern healthcare environments tailored to an older population.

Beyond demographics, healthcare utilization overall has increased. Patients today expect faster, more convenient care options, driving the rise of specialized outpatient centers, urgent care clinics, and diagnostic facilities. At the same time, major health systems are decentralizing their operations—expanding into suburban and off-campus locations to better serve residential communities. Areas such as Gilbert, Queen Creek, and North Peoria have seen an uptick in medical construction as health providers follow population growth patterns, ensuring care is delivered closer to where people live.

For investors, medical office properties have become a bright spot in a volatile market. While traditional office demand remains uncertain, healthcare properties have shown resilience through economic cycles, thanks to long-term leases, stable tenant bases, and consistent demand. The sector’s performance during recent economic disruptions demonstrated its defensive nature, leading more institutional and private investors to view medical real estate as a safe harbor asset class.

As Arizona continues to grow and healthcare evolves toward community-based access, the state’s medical real estate sector stands poised for sustained expansion. Between strong demographic tailwinds, tenant stability, and investor confidence, medical properties are increasingly seen not just as a niche opportunity—but as a cornerstone of Arizona’s commercial real estate future.

Can a completely new Real Estate Investor go straight into Commercial Property Investing?

Absolutely! Starting out as a new commercial property investor can be a great opportunity for learning and growth.

Commercial property investing may seem daunting at first, but with the right mindset and approach, anyone can dive into this exciting realm of real estate. Here are a few key points to consider if you’re a complete new investor thinking about venturing into commercial property investing:

1️⃣ Education is Key: Before jumping in headfirst, take the time to educate yourself about commercial real estate. Learn about different property types, financing options, market trends, and investment strategies. There are plenty of resources available, including books, online courses, seminars, and mentorship programs. Building a solid foundation of knowledge will boost your confidence and help you make informed decisions.

2️⃣ Network and Seek Guidance: Surround yourself with experienced professionals in the field. Reach Attend industry events, join real estate investment groups, and connect with local investors. Building a network of mentors, real estate agents, brokers, and fellow investors can provide valuable insights, guidance, and support as you navigate the commercial property market.

3️⃣ Start Small and Gain Experience: Consider starting with smaller commercial properties that are more manageable and less complex. This allows you to gain hands-on experience without overwhelming yourself. Look for opportunities in your local market, such as retail spaces, small office buildings, or industrial properties. As you become more comfortable and knowledgeable, you can gradually expand your portfolio and tackle more significant investments.

4️⃣ Partner Up: If you feel uncertain or lack the necessary capital, partnering with experienced investors or forming investment groups can be a smart move. Collaborating with seasoned professionals not only brings financial benefits but also allows you to learn from their expertise. By pooling resources and sharing responsibilities, you can mitigate risks and increase your chances of success.

5️⃣ Embrace a Long-Term Perspective: Commercial property investing is a long-term game. It requires patience, perseverance, and a willingness to weather the ups and downs of the market. Understand that success may not come overnight, but by staying focused on your goals and consistently learning and adapting, you can pave the way for significant financial rewards.

Remember, every successful commercial property investor was once a beginner. With the right mindset, a thirst for knowledge, and a willingness to take action, you can overcome the initial challenges and embark on a rewarding journey in commercial property investing.

However, it’s crucial to approach this venture with caution. Seek advice from professionals, conduct thorough due diligence on potential investments, and consider consulting with a real estate attorney or financial advisor to ensure you’re making informed decisions.

So, if you’re a completely new investor dreaming of entering the commercial property market, take the leap of faith, educate yourself, build a strong network, start small, and embrace the journey. The possibilities for growth and financial success await you. COBE Real Estate is here to support you along your commercial property investing journey!

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