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Medical Office | 21H1 Market View

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The medical office market has shown resiliency throughout the pandemic.  Although there was initially a jump in vacancy, as the vacancy rate increased by 80 bps throughout 2020, negative effects seemed to have slowed, with the vacancy rate increasing 20 bps during H1 2021.  Not only this, but there is a clear difference between the effects of the pandemic on higher quality product versus lower quality product.  Class A product ended H1 2021 at a tight vacancy rate of 5.8%, while Class B and C more than doubled that, with a vacancy rate of 12.0%.  Furthermore, Class A rents have skyrocketed despite the pandemic, having increased 12.2% since the beginning of 2020, rising from $22.66 to $25.43 average gross rent per square foot.  Class B and C rents have also increased, albeit not as drastically, increasing 6.8% since the beginning of 2020, rising from $19.36 to $20.67 average gross rent per square foot.  The positive performance of these fundamentals provides optimism for the medical office market going forward.

Medical Office H121

Medical Office | 21H1 Market View

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Komail Khaja

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Richmond - North

Komail is the Director of Research for Central, Western, and Southeastern Virginia.  As of February 2022, Komail also oversees research operations in Raleigh, NC.  He joined Colliers | Virginia in January of 2019.

Komail oversees research operations throughout the region, manages the Research Analysts in the company, and supports all the company’s brokers primarily in the Richmond and Norfolk offices.  He began his real estate career in 2014 as a Real Estate Services Manager for the Fairfax County Economic Development Authority and then moved to CBRE as a Business Research/Data Intelligence Analyst.  He provides valuable customized research data which includes market trends, lease and sale comparables, GIS mapping, economic information and more.  In addition, he is also responsible for quarterly market reports, maintenance of the company research database, and tracking notable news/patterns pertaining to the local real estate market.

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Komail understands the needs of clients and works to deliver top-notch market research and analysis to help our sales professionals deliver the best service to their clients so they can make the most informed decisions on their real estate needs.

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Chris Kieran is a Principal in the Norfolk Colliers office and brings over 22 years of commercial real estate experience to his specialty of representing owners and occupiers of office and medical properties throughout Southeastern Virginia.

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