What are the investor concerns and considerations with medical office space? To answer that, I invited my friend and real estate business partner, Mike James, to share insights from his 25 years in commercial real estate. We dive into capital outlay, tenant improvements, and the financial factors that make medical properties strong long-term investments.

Mike James: Your Alaska Commercial Real Estate Expert at Berkshire Hathaway

· Mike James is a commercial real estate professional in Alaska with over 23 years of experience.

· He spent a decade at Bon Stevens and Johnson and co-founded Commercial with Alaska. Today, he leads the commercial division for Berkshire Hathaway in Alaska and is known for his expertise in medical, office, and retail real estate.

· Mike has a deep understanding of Alaska’s economy and medical industry, and his approach to business is built on trust and long-standing partnerships.

Why Medical Real Estate is Growing in Alaska (00:02:05–00:07:04)

· Alaska’s medical industry is growing fast, attracting physicians, nurses, and technicians to cities like Anchorage, Nome, and Fairbanks.

· Mike explains that new surgery centers must go through a strict Certificate of Need process, which makes building new centers challenging.

· Urgent care is also expanding, offering convenient, cost-effective care and helping hospitals focus on serious cases.

Primary Care and Office Conversions (00:08:36–00:12:23)

· We talk about the steady demand for primary care providers and the rise of specialists.

· Traditional office buildings, such as a former Wells Fargo location recently purchased by a physician, are being converted into modern medical facilities. Moves like this make it easier for providers to collaborate and refer patients under one roof.

Why Medical Offices Are Attractive Investments (00:13:23–00:15:03)

· Medical offices are appealing because they usually have longer lease terms, tenants invest heavily in specialized buildouts, and vacancy rates are low.

· These spaces help investors reach the “buy-and-hold” dream.

· Anchorage is also seeing more in-state specialists, reducing the need for patients to travel to places like Seattle.

"It’s always really attractive, whether it’s physicians investing in themselves or an outside group getting involved. Physician-occupied buildings are a magnet because they usually have stable, long-term tenants." – Mike James

Resources

Check out my guest, Mike James, at Berkshire Hathaway Home Services Alaska Realty to learn more about his work in commercial real estate.