SPECIALIZED SERVICES
Taking the time to become the expert in a niche market or service industry provides for expanded service lines, more revenue generation and ownership opportunities
if that is possible or of interest. Understanding changing
market dynamics and their impact on your client base allows
a great opportunity to bring ideas and solutions to them and
drive value and assist them with aligning their real estate with
their financial goals and objectives.
Davis Real Estate Services focuses solely on healthcare users.
We create real estate and development strategies for large
healthcare systems and independent clinics through specialized
demographic mapping, competition profiling, and determining
future growth markets, in addition to formulating long term
real estate strategies that drive growth and revenue for our
clients and partners.
Many of the long term plans include new facilities in expanding
markets or replacement of older, outdated facilities. This is
all in an effort to provide superior patient care closer to the
consumer at a lower cost. These facilities are generally full
service and include a large primary care component, urgent
care, pharmacy, specialty services, and possibly a surgery
center. They are expensive to build (approximately $280 -
$300 sq. ft. all-in) and we have been successful in directing
the land assemblages, coordinating the lease(s), orchestrating
the development of the facility, and assembling the equity and
financing to complete the project for our clients in a timely
and cost-effective manner. This allows the clinics to focus their
capital dollars on technology, equipment, and labor, versus a
real estate asset. Systems and clinics will commit to 10- to 20-
year lease terms for a favorable tenant improvement allowance,
which also allows for aggressive financing.
Over the past five years our team has developed eight full-service medical buildings. Under very competitive market
conditions for medical office building acquisition we were
able to sell a large JV interest in our developed portfolio to
a healthcare REIT. This provides us with a strong partner for
future developments or acquisitions and allows us to continue
to lease and manage the growing portfolio.
By providing specialized real estate advisory services, our
small firm was able to drive exceptional value for our clients
and substantial profit for our investment partners and ourselves
with the packaged sale of a newly developed medical office
portfolio of buildings for over $116,000,000.00 this past
January 2015.
This brokerage and development advisory process could be
successful in other niche industries where a good understanding
of the business and service model of your target user can
create new opportunities, such as in specialized data centers or
distribution centers.
By Jill Rasmussen, SIOR