“Adaptive reuse”-retrofitting existing structures for purposes other than those initially intended-might be all the rage. But most healthcare real estate veterans are quick to dismiss the idea of converting traditional commercial office towers into medical office buildings (MOBs).
Years of experience have convinced them that the unique requirements of physicians and other healthcare providers demand a tailor-made facility-one designed with special-use spaces; filtered, separately controlled heating, ventilating, and air conditioning systems; more robust electrical and plumbing systems; specialized lighting; and more parking, among other features.
The building's location can be another obstacle. Unless a satellite facility is being established to try to serve new markets, physicians and patients usually want MOBs to be on or near hospital campuses.
In short, the conventional wisdom is that retrofitting a mainstream office building for medical use simply isn't viable. However, at least one project is proving that there can be exceptions to that rule.
Secure the perimeter
When the Perimeter 400 project opened in 1980, it seemed to have all of the ingredients for a successful commercial office development. The two-building, 363,174-square-foot office complex was connected by a three-story plaza and featured amenities including a four-level parking deck, an on-site café, and a fitness facility. Above all, it appeared to have a highly desirable location: just off Interstate 285 and Georgia State Route 400 in Atlanta's busy Central Perimeter sub-market.
But success never found Perimeter 400. By the mid-2000s, the complex had been renamed Center Pointe but was showing its age, with deferred maintenance and an occupancy rate of only about 78%.
