2004 Mid-Year Medical Office Market

Market Trends

  • The Columbia, SC medical office market continued to expand with the addition of several new facilities occurring in the first half of 2004. The market continues to grow as a result of the expansion of hospital based medical office space as well as private physician practice groups developing multi-tenant medical office buildings. Total inventory in the medical office building (MOB) market, including MOBs which are nearing completion, is approximately 1,450,000 square feet as of June 30, 2004.
  • As of mid-year 2004, the overall occupancy rate of the Columbia area MOBs was 88.8%, down from 93.3% at year-end 2003. This decline in occupancy takes into account the addition of over 150,000 square feet of new space added to the market. The average full service rental rate in the Columbia area as of mid year 2004 increased to $20.09 per square foot from $19.91 per square foot at year end 2003.
  • The MOB market in Columbia is primarily controlled by the four major hospitals operating within the metropolitan area. The hospitals include Lexington Medical Center, Providence Hospital and the Palmetto Health Alliance, which is comprised of Palmetto Baptist Medical Center and Palmetto Richland Memorial Hospital.
  • The growth of the MOB market is principally driven by the strategic expansion of hospital services into growth corridors of Richland and Lexington counties.
  • Palmetto Health Alliance has announced plans for a $100 million hospital, called Palmetto Health Parkridge to be located on Parkridge Drive in the Irmo area of Columbia. The full-service hospital is expected to open in 2007, with as many as 100 beds.

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