Page 2 — Health Care Properties Quarterly — January 2020 Contents Letter from the Editor A s we kick off 2020, the health care and senior housing market in Colo- rado remains strong as evi- denced by the articles from contributors in this issue! This issue takes a look not only at how the Denver metro medical office building sector is faring but also at the trends impacting the industry, including how convenient retail and “instant” gratification is shaping consum- ers’ expectations for health care delivery. As well, the issue offers a peek into the future of out- patient facility design; new elec- trical standards that if not followed can put people and facilities at risk; how senior renters are affect- ing Colorado real estate; and the benefits of bringing pets into senior communities. Interestingly, Denver, while not one of the fastest-growing medical office markets in the U.S., contin- ues to see high annual deliveries and – to no one’s surprise – one of the highest asking rents per square foot, according to recent CBRE report on the U.S. medical office market. Denver had a vacancy rate of 8.9% – while the overall U.S. medi- cal office market vacancy rate was 10.3% through midyear – with ask- ing rents of $29.05 per square foot that only trailed coastal markets such as Los Angeles, Manhattan, Orange County, San Diego, San Francisco, Seattle, South Florida and Washington D.C./suburban Mary- land. Nationally, demand for medical office space remains strong as the median age of the U.S. popula- tion grows, prompting health care expenditures to exponentially increase – and which are forecast- ed to show little sign of slowing, according to the report. As discussed in this issue and quarterlies past, the report empha- sizes that there is a decentraliza- tion of the health care industry to provide services closer to the consumer and the continuation of consolidation among health care providers with the mergers and acquisitions of hospitals and health care systems. It will be interesting to see how 2020 unfolds and if Denver keeps pace with rental rates rivaling cit- ies on the coast and vacancy rates below the national average; what new trends will define and shape the way health care is delivered; and how aging baby boomers shape the future of senior living. As always, we couldn’t do this publication without you and your contributions. It is your voices that are the heart of the quarterly – and for that we are so appreciative! Jennifer Hayes 303-623-1148, Ext. 106 Looking ahead in 2020 Market Update Retail expectations: Is health care following suit? Vicki Mettlach, RN, EDAC, Kate Allen, PE The evolution and future of outpatient facility design Amy Dvorak, Associate AIA Risks from outdated electrical equipment labels Jeffrey Engelstad, PE, MBA, Jack Cain, CSP How the rise of senior renters is affecting Colorado Greg Bacheller Fostering a healthy animal-people dynamic Jami Mohlenkamp 8 9 12 13 14 16 Health Care News - Page 3 Dry Creek Medical Office Building 125 Inverness Drive E. in Englewood, Colorado Class-A MOB Opportunity This Class A medical office building is ideally located in a well-established suburban office and residential hub within one of the fastest growing regions in the Denver metro area. • Available suites ranging from 900 SF – 12,000 SF • Close proximity to Sky Ridge Medical Center, Centennial Medical Plaza, Medical Center of Aurora and Adventist Hospital • Recently updated landscaping, paint, and interior improvements • Covered parking S HAVANA ST. E GEDDES AVE. 125 INVERNESS DR. E For inquiries, please contact: Dann Burke, CCIM (720) 528-6362 | Stephani Gaskins ( 720) 528-6346 |