The next big thing emerging in Charlotte NC real estate is the increase in demand for Health Care development.

As demand grows for space and the need for more outpatient service grows, a multitude of physicians offices, specialty clinics and imaging centers are emerging in the Downtown Charlotte Real Estate Market landscape as well as on the outskirts of the city.

Competition is intensifying among long time medical office developers as commercial developers are seeing their share of the market. Approximately 4.3 million square feet of multi-tenant office space is currently under construction in the Mecklenburg County NC Real Estate. According to Karner Research Company. However, statistics on the size of the Medical Market are still a mystery. Charlotte NC Real Estate researchers only recognize multi-tenant leased space without making a sistinction from medical and general offices. Add to the fact, a lot of the new medical office space will most likely be in the form of Condo style medical offieces and owner occupied buildings.

Mecklenburg County NC Real estate has over 40 million square feet of Rental general office buildings. Charlotte area medical office space is expected to exceed 7 million square feet. Carolinas Health Care and Presbyterian Healthcare have invested millions over the past few years. Recent examples of investments into the facilities include plans for an 8 floor patient tower by Carolinas Medical Center- Northeast in the Concord North Carolina Real Estate Market. 286 patient beds will be renovated. In addition, over 424,000 square feet will be added to the hospital complex. A 1 million square foot corporate research campus by Kellswater is in the works for the Kannapolis NC Real Estate Market. Plans include substantial medical office space.

Planet Five Development Group of Jacksonville Fla. Is eager to obtain a vacant building in the Downtown Charlotte Real Estate Market located at the corner of East Moorehead Street and Kenilworth Ave. Plans indicate the firm wants to demolish the long time vacant Charlotte Property and build 120,000 square feet targeting the medical industry.

Colony Development Partners have released information that they plan to use investments to increase ability to develop more health care facilities. They are scheduled to complete construction next month on their 45,000 sq/ft medical office building next to the Iredale Memorial Hospital in Statesville, N.C.

With the merging of Cogdell Spencer INC. and Marshall Erdman and Associates of Madison Wis. they are now the Nations largest developer of medical facilities. With 150 projects under construction they recently announced planned purchases of over $350 million dollars to buy existing heath care facilities throughout the country. The Charlotte-based pioneer in medical office space development manages 800,000 sq/ft in the Charlotte Metro Area including its first project 36 years ago, the Randolph Medical Park in South Charlotte. Medical offices like these are not likely to be the future of development.

A new concept offers more of a modern approach with facilities being located closer to hospitals. Medical procedures are more likely to be out patient due to rising costs in healthcare. Therefore, you are more likely to see surgical suites, procedure rooms and other specialty components as the industry moves in this new direction.

The driving force behind this is of course baby boomers. This group tends to do more elective procedures, diagnostic tests and alternative medicine than ecer before with over 70 million nationwide. With the aging of Baby Boomers there has been an increase in the use of medical facilities nationwide. The trend is expected to continue for the next several decades. As baby boomers continue to age they will continue to require higher levels of care. US Census Bureau indicates that by 2020 the over 65 population will increase by 50% while the under 65 population is expected to increase by less than 10%.

Considering the current financial markets there is less risk associated with the medical market. Health Service Providers are more likely to stay in the same office year after year compared to other types of tenants. This will make it more likely for a lender to extend financing to a Firm interested in developing Health Care Facilities.