Doctors Replace Wall Street Bankers as Go-To Buyers

New York Sun (08/28/08); Taylor, Candace
Although Wall Street continues to feel the effects of the economic downturn, more and more medical professionals--whose incomes are largely insulated from recessionary pressures--are buying up everything from Class A office space to pricey penthouses in New York City. In response, banks are beginning to woo wealthy doctors looking for office space for their practices by tailoring loan products specifically for them, ranging from mortgages with amortization schedules of up to 30 years to as much as 100 percent financing on medical condominiums. Despite an overall cooling in the office market, Corcoran Wexler Health Care Properties President Paul Wexler reports that he has seen an increase of nearly 15 percent in medial office transactions this year. Last month, Manhattan's overall office vacancy rate increased to 7.3 percent from 5.8 percent a year ago, confirms Cushman & Wakefield.