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Page 24 — Health Care Properties Quarterly — April 2018 www.crej.com noted sectors. In 2017, the United Health Foundation ranked Colorado among the top 10 healthiest states in the nation and had the lowest prevalence of obesity and physical inactivity. Healthy living requires state- of-the-art health care systems to provide the best medical ser- vices to the population in demand. Medical companies and physician groups are taking advantage of this increased demand and expanding their presence in the Denver metro area. SimonMed Imaging, one of the largest outpatient medical imag- ing providers and largest physician radiology practices in the United States, is one of the most recent health care companies to move into Denver. SimonMed Imaging has a strong footprint in Arizona, Nevada, California and Florida. We presented Denver’s growth and opportunities to the company and SimonMed now has a pres- ence in one of our buildings in the Lone Tree area, with more plans to expand throughout the metro Den- ver region with its state-of-the-art equipment and best-in-class care. In addition to SimonMed, HTA has recently signed leases with two other Western U.S. regional com- panies establishing their first loca- tions in Colorado. While it was noted that construc- tion costs are going up in Denver and trending above other Western U.S. markets, it is not affecting the medical office space demand. Rather, we are seeing tenants sign longer leases to minimize their out- of-pocket costs while building out a functional, operationally efficient space. Most of the new leases HTA has signed in Denver have term lengths between five and 10 years. University health systems across the nation have risen to the fore- front of the health care industry’s growth and demand. One such uni- versity is the University of Colorado, which we recognize as one of the most progressive universities in the nation, specifically on the health care side. University of Colorado Hospital is ranked in the Top 15 adult hospitals in the U.S. (US News and World Report) and ranked the No. 1 Academic Medical Center for quality (University Health Consor- tium). Its Anschutz Medical Cam- pus located at Fitzsimons has been recognized as the largest academic health center in the Western U.S. Like several other strong health sys- tems in core markets, the Univer- sity of Colorado has been actively acquiring prominent physician groups and expanding hospitals throughout the Denver metro area, which is driving more demand for medical office space throughout the market. With over half a million sf of medical office buildings, Denver is one of our key core markets. We anticipate our footprint in Denver will continue to grow, as will the demand for medical office space for lease. All of HTA’s properties in Denver are leased and managed in-house as part of our nationally recognized asset management plat- form. This platform consists of on- site leasing, property management, engineering and building services, and development capabilities to create complete, state-of-the-art facilities in each market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation. s Northam Continued from Page 1 SimonMed Imaging chose the Lincoln Medical Center at 11970 Lioness Way for its first Colorado location. ance coverage; service offered, prod- uct or experience; and health care spending. In North America, the wellness community market is worth an esti- mated $52.5 billion, with an annual growth rate of 6.4 percent. Glob- ally, it is valued at $134 billion and is expected to reach $180 billion by 2022, according to Fast Co. CMS reports the overall share of gross domestic product related to health care spending was 17.9 percent in 2016. In 2017, the Front Range posted a low retail vacancy rate of 4.6 percent with a 5 percent increase in aver- age rents. Capitalizing on projected growth by considering key factors will contribute to retail real estate sustainability and expansion. • Rethinking the role of the asset. Providing a one-stop convenience for consumers offering food, fitness, health and fun reduces the need for shopping around and increases center synergy. Encouraging a ten- ant mix provides the opportunity for business collaboration and refer- rals without the need to leave the center. Promoting cross-branding and tenant collaboration inevitably drives more traffic. While offering a variety, maintaining a complemen- tary theme among the center will provide a one-stop effect for the consumer. There are many retail malls that have utilized health and wellness to revive the asset. Vanderbilt Health leased 450,000 square feet at the One Hundred Oaks Mall in Nashville for 22 clinics, a pharmacy and lab. The Atrium Mall, near Boston, trans- formed into a health, wellness and medical destination with the help of a 286,000-sf Lifetime Fitness center. Transitioning a retail space solely for use as a health care space pro- vides challenges to owners such as frequently changing regulations, hefty build-out costs and security. Owners and operators of large cen- ters are hesitant to invest in such projects given the ever-changing health care landscape. With that in mind, diversifying the market space offerings within a center lends itself to less long-term risk and overall costs. Some considerations for sole health care use are: proximity to major med- ical centers, urban vs. suburban, does the provider emphasize customer ser- vice and experience, and the percent- age of private insurance vs. Medicare and Medicaid in the area. There is tremendous opportunity for the health and wellness health care real estate and development community. Following the consider- ations presented when determining retail health and wellness space will improve your experience, reduce vacancies, provide owners with a competitive market stance and abil- ity to meet the demands of the consumer. s Powell Continued from Page 12 to be drawn and respected by all staff within the pharmacy. At a minimum, separate areas for hazardous drug compounding, nonhazardous drug compounding, buffer area, storage and an ante room are needed. It might surprise you, but the regulations for hazardous drug compounding areas within a pharmacy are more stringent than those required for sterilization in an operating room – think cleanroom environment vs. sterile environment. The importance of an ante room is not something to be ignored. Staff need adequate space to don and doff gowns, goggles, face shields, gloves (often two pairs are required) and other necessary personal protective equipment. Not only is the space needed, but also the proper air pres- sure and quantity of air changes need to be provided to keep airborne hazardous materials from entering patient and public areas. The HD com- pounding room should be negative to the adjacent ante room (ISO Class 7). These air requirements can be chal- lenging to an existing facility, as they may require upsizing of duct- work that travels throughout other areas. A dedicated exterior exhaust connection is critical. The ideal pharmacy layout is one of adequate separation of drug types and safety for the pharmacists and staff handling the drugs while meet- ing the functional operations. We recommend you not take these regu- lations and recommendations lightly and strive to keep your clinicians and staff safe for the general health of all. s Hagan Continued from Page 14 • Hearts and crafts. Another popu- lar modern social or date activity involves painting, crafting or oth- erwise making things together. For instance, “sipping and painting,” or guided painting classes paired with a cocktail or glass of wine, have become very popular as social activities. For recreating these opportunities in a senior living community, you don’t need much more than a multipurpose room with tables and chairs. Outside companies can be hired to present the craft. Afterward, the room can be transformed into a temporary gallery space, where residents can display and view their work. From mingling at happy hour to cre- ating painted masterpieces together, there are plenty of opportunities to bring romantic social experiences into the senior living space. Through thoughtful use of existing spaces, both architects and senior commu- nity staff can help bring these expe- riences to life. s Mohlenkamp Continued from Page 22 requirements. This allows for new synergies to partner with fitness, retail and primary care partners in a truly integrated health and wellness campus setting. This also allows opti- mization of the traditional hospital environment to be focused on provid- ing acute, diagnostic and treatment areas that allow for flexibility and continuous modernization. The next evolution in challenging the para- digm is further leveraging efficiencies while balancing code requirements that often require the separation and duplication between outpatient and inpatient service lines. Allowing these services to coexist together while pre- serving what’s best for the patient via the code process is underway in many locales resulting in the reduction in the cost of patient care and the built environment. Innovations in design and tech- nology, and collaboration with key stakeholders are the central themes required when embarking on the development of a new health care facility. This applies to the design, build, operation and full continuum of the facility. s Cooper Continued from Page 16