Cities and developers are always looking for ways to revive aging downtowns and turn them into thriving areas. One strategy that has worked is to use cultural institutions as an anchor that attracts and keeps new residents and businesses. In Columbus, Ohio one such district is currently under development. Called the Discovery District, it will soon include multifamily, office, and retail space along with a library, museum, literary center, and parkland. These institutions are helping to create more desirable areas.

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Medical office buildings (MOBs) may be the next best purchase in real estate, and some investors are doubling down on these “cycle-resilient” real estate investments. Stable demand, higher occupancies, and rising rental rates are making this asset type all the more enticing. Despite trends showing strong demand, inventory has only increased 1% since the start of the new cycle, supporting MOBs as the go-to investment choice. Furthermore, the slothful pipeline has made the investments more secure as it has kept inventory growth relatively low. Inventory that has been delivered has replaced functionally obsolete product. With the healthcare employment sector in a robust growth cycle, MOBs may be the logical next investment.

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Trends in office space are transforming and offering more to tenants. Amenities—retail is becoming critical to attracting tenants whose employees are searching for a more robust amenity base. Vouchers in exchange for parking—as parking options are declining within CBD submarkets, landlords have opted to provide vouchers for Uber and Lyft. Tech infusing all of office—smart technology is growing and landlords are providing connectivity to office lighting and HVAC systems via iPhones and employee tablets. Sticker shock will only get worse—as demand outpaces supply, rents have gone up. Take into consideration rising construction costs, and boosts in rent will only increase. To build a new building, particularly in Atlanta, developers estimate a cost of $500 per square foot (sf).

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