Sixteen medical groups have expressed interest in leasing space within Northwestern Memorial HealthCare’s new $334 million outpatient tower in Chicago, according to a Crain’s Chicago Business report.
The state-of-the-art facility is slated for completion in 2014. While a Northwestern spokesperson said the system is not yet “actively, aggressively starting to lease,” sixteen groups have signed non-binding letters of interest and would take up a combined 88 percent of the new space.
Some physicians, however, have said their plans are subject to change. Rent in the new 25-story office could cost 30 percent more than in their existing location, which was a deciding factor for Northwestern Internists’ renewal of its lease with its current facility. “Our lease is 10 years, so I have to project out 10 years,” James Pekarek, practice administrator, said in the report. “If I look at (reimbursement) rate reduction, and add on rent and escalation, that’s where the problems occur.”
Other physicians cited in the report were ready to move, citing the amenities of the new facility, centralized location and Northwestern brand and name as factors outweighing any bumps in cost.
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