CREJ

Page 2 — Health Care Properties Quarterly — April 2019 www.crej.com Contents Letter from the Editor D enver’s medical office mar- ket, like medical office mar- kets nationwide, is evolving to meet the changing needs of patients – and health sys- tems – and part of this evolution is the growing demand for outpatient and off-campus medical office build- ings. Marcus & Millichap and CBRE recently released reports underscor- ing this trend that continues to shape the Denver and national medical office landscape. In its first-half 2019 national report, Marcus & Millichap noted that institutional investors as well as larger funds and real estate invest- ment trusts remain focused on high- quality medical office buildings that are fully occupied near major hospi- tals or in medical corridors as health care dynamics have shifted in favor of outpatient care over the last two decades. Likewise, CBRE in its most recent report on the asset class noted that with rising rents, health systems have increasing turned to lower-cost out- patient centers, which enable them to provide lower-cost services closer to where patients live. Additionally, it noted that medical office properties have shifted from a specialty asset class to a core asset class. While off-campus MOBs are sought- after, it isn’t stopping Centura Health and UCHealth from moving ahead on growing their campuses in Colorado. As highlighted in this issue of Health Care Properties Quarterly, Cen- tura Health recently acquired a nearly 58-acre parcel in northern Colorado Springs, where its planning a third hospital campus for Penrose-St. Fran- cis Health Services. UCHealth is plan- ning not only a new 11-story tower at the University of Colorado Hospital on the Anschutz Medical Campus that will initially provide another 103 inpatient beds but also a 390,914-sf interdisciplinary medical office build- ing at the CU Anschutz Medical Cam- pus in Aurora. The quarterly also features numer- ous articles emphasizing the effect the design of health care spaces can have on everything from revenue streams to caregiver experiences; a look at how Denver’s annual 3 per- cent rent escalations could affect health care organizations; legal con- siderations in medical office leasing in properties not specifically designed and operated as MOBs; the impor- tance of meeting original project scope in determining the success of a project; and a unique article from OZ Architecture’s Jami Mohlenkamp, who explores how incorporating hotel amenities in an older housing com- munity can help destigmatize the concept of aging. Like every issue, it’s a great read. I hope you enjoy! Jennifer Hayes jhayes@crej.com 303-623-1148, Ext. 106 Evolving to meet needs Market Update How annual escalations could affect organizations Bill Lucas, Stuart Thomas, Ken Brown Unique issues and pitfalls in medical office leasing Rick Thomas, Noelle Riccardella Integrating modern equipment into existing spaces Ted Laszlo Health care design with the caregiver in mind Mary Morissette, FAIA, LEED AP How lean IPD thinking can fix ‘hidden’ problem Romano Nickerson, AIA, LCI Incorporating hotel amenities in older adult housing Jami Mohlenkamp 10 12 14 16 18 19 20 Health Care News - Page 3 DENVER HEALTHCARE REAL ESTATE SERVICES Dann Burke, CCIM First Vice President 720 528 6362 dann.burke@cbre.com Kory Fasing Senior Associate 720 528 6316 kory.fasing@cbre.com Naum Nasif Senior Associate 303 628 1729 naum.nasif@cbre.com www.cbre.us/denverhealthcare SWEDISH MOB I 601 E Hampden Ave, Englewood SWEDISH MOB II 701 E Hampden Ave, Englewood SWEDISH MOB III 799 E Hampden Ave, Englewood SWEDISH MOB IV 499 E Hampden Ave, Englewood SWEDISH MEDICAL CENTER CAMPUS For more information on space available, or to schedule a tour, please contact: AURORA CHERRY CREEK MOB 1411 S Potomac St, Aurora AURORA ASPEN PEAK MOB 1421 S Potomac St, Aurora AURORA TIMBER RIDGE MOB 1444 S Potomac St, Aurora MEDICAL CENTER OF AURORA CAMPUS SKY RIDGE CONIFER BUILDING 10099 Ridgegate Parkway, Lone Tree SKY RIDGE ASPEN BUILDING 10103 Ridgegate Parkway, Lone Tree SKY RIDGE EVERGREEN BUILDING 10107 Ridgegate Parkway, Lone Tree SKY RIDGE MEDICAL CENTER CAMPUS ON CAMPUS LOCAT I ONS LEAD TO THE MOST REFERRALS