3 Things You Should Consider Before Investing In A Medical Office Building

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Medical office buildings, also known as MOBs, are an important asset class within the office commercial real estate market. These buildings generally offer investors stable, sizeable returns because they have a strong tenant base, low vacancy rates, and growing demand for outpatient services in retirement communities.

If you’re thinking of investing in a medical office building, ask yourself these three questions before visiting the property or talking to your lender for commercial property loans in Texas.

Where it’s located?

Similar to other commercial real estate sectors, location is critical for medical office buildings. But location dynamics are different for medical office buildings compared to those of traditional office properties. MOBs near major hospital campuses tend to perform better, and those near retirement communities or areas with older populations also offer significant investment upsides.

Does It Have the Right Features?

When considering an investment in a medical office building (MOB), it's important to be aware of some characteristics that may affect the value of the property. For example, a MOB may be more likely than a standard office building to have accessibility requirements under the Americans with Disabilities Act, which can impact both renovation costs and tenant satisfaction. Since the plumbing and electrical systems vary from one building to another, it's wise to do a deep dive into these areas before making an offer on a MOB. Also worth noting: Parking ratios may differ for MOBs, so you should double-check how many spaces your investment will include before committing.

Do the Size Tenant Mix Meet Patient Needs?

The size of a medical office can vary greatly, but a general practitioner may require about 1,500 to 2,000 square feet and a specialist may require around the same. Just because there’s enough space for one or two tenants doesn’t mean there’s enough room for them to attract patients. In order to create an ecosystem that benefits the patients and creates profit for you, make sure there are complementary tenants in the area.

If you’re thinking of investing in a medical office building and looking for affordable Commercial Property Loans in Texas, Commercial Loans of Texas has you covered. We have commercial loan products for first-time commercial buyers and experienced investors alike. As a direct lender in Magnolia, Texas, we can offer a variety of loan types to businesses of all sizes. Get in touch with us now!

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