Having a reputation for stabilizing value-add medical office properties and finding dynamic new developments for her clients, Trisha Talbot, CCIM, is a respected leader in the Arizona healthcare brokerage community and sees many changes ahead for the medical office sector.
As part of the Global Healthcare Services practice at NGKF, Talbot and her team have successfully closed almost $1 billion in sales transactions and represented more than 150 hospital and healthcare groups nationwide. She regularly assists physicians and administrators and has seen traditional hospital based visits evolve as patients, physicians, and insurers all look to more convenient, nontraditional ways of interacting and receiving healthcare.
Talbot foresees much activity for the medical sector in the near future. She talked to Commercial Investment Real Estate about her experiences.
CIRE: Why did you select the medical office sector as your specialty?
Talbot: I started my real estate career with a medical office developer in Phoenix. Brokering deals for medical office buildings just became ingrained in me. I enjoy the dynamics of the healthcare real estate asset class because that it has beneficial and purpose-based reasons for development and delivering healthcare services. Ultimately, what I do helps people, by providing and improving access to healthcare services. That is extremely rewarding.
CIRE: What are some insights you can share about the medical office sector? Are there differences in the Arizona market because of the population?
Talbot: I've learned that different specialties have varying specific requirements and appreciate the nuances across the variety of medical practices. Over time, as I have gained detailed experience with numerous and diverse specialties, I better understand each practice's individual and specific needs. Like anything in commercial real estate, every day is different and brings new challenges. I enjoy working with individual physician groups, as well as the hospitals and property owners, and bringing them all together to achieve established goals for a project or property.
The Arizona medical office market is unique, as we have available space versus a state like California where the supply is low and the demand is high. We are fortunate to be in a market with a higher supply because the area is seen as an affordable alternative to many high cost markets nationwide, with value added potential as the economy continues to expand steadily.
CIRE: How has retail and urgent care medicine affected medical office demand?
Talbot: New “retail style” healthcare facilities are absorbing retail sites as they want to be in high visibility areas. Urgent care facilities are often taking locations that might have been slated for fast food because those sites offer the visibility and access that appeals to both users and providers. These medical sites are typically built by the healthcare company that owns them.
For patients, immediate healthcare is available more easily and quickly. It also allows healthcare providers more effective access to patients. Insurance providers are serving more diverse patient bases and striving to do so in a more cost-effective manner. As a result, physician groups and healthcare organizations are strategically choosing which locations will have the most access to their desired patient base.
I also see many physicians frustrated with insurance. As a result, they are becoming very private - not accepting any insurance and going all cash. Ultimately, healthcare service delivery is going in two directions: there is the need to serve the public at large, and the continuing trend of private medicine turning back to all cash based.
CIRE: What advice do you have for women in commercial real estate who are considering entering the medical office sector?
Talbot: It's just like anyone entering the commercial real estate industry: you have to work hard. You cannot expect to be entitled to anything other than the effort you put into it. I think this is true for anyone entering this field, not just women.
However, the healthcare marketplace is more diverse because there are so many female physicians and administrators who are making decisions. In some respects, female brokers in healthcare can be more relatable for them. In the end, the job remains the same: endeavoring to meet client requirements, studying new legislation, understanding market trends and nuances, and creatively and strategically determining a viable plan that will achieve your client's goals.
CIRE: How has the CCIM designation helped you to adapt your skills to medical office specialty?
Talbot: Deals in healthcare have an incredible, often complex, financial component to them. I use what I have learned through CCIM Institute courses in almost all my dealings, such as financial analysis, offer comparison, and building appraisals and valuations. The CCIM designation provides the prestige, knowledge, and skills necessary for long-term success in commercial real estate.