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Designing a New Standard in Outpatient Cardiovascular Care

Synergy Architecture Studio’s Work on the First Ambulatory Outpatient Cardiovascular Surgery Center in Minnesota

As healthcare systems across the country continue to advance toward outpatient care models, cardiovascular medicine is undergoing a profound transformation. Procedures that once required hospital admission are now being safely and efficiently performed in ambulatory settings—driven by new technology, evolving clinical protocols, and a patient‑centered focus on experience and recovery.

At the forefront of this transformation is Synergy Architecture Studio, which recently completed the design of the first Ambulatory Outpatient Cardiovascular Surgery Center in Minnesota in collaboration with SCA Health, Allina Health, and Minneapolis Heart Institute. The project represents a significant milestone: the creation of a purpose‑designed outpatient environment capable of supporting complex cardiovascular procedures traditionally housed within acute‑care hospitals.

Allina Health MHI Surgery Center is on the fourth‑floor of Centennial Lakes Medical, a multi‑tenant medical outpatient building in Edina, MN that integrates two state‑of‑the‑art cardiovascular (CV) procedure suites with highly specialized clinical, imaging, and recovery spaces. Through its carefully orchestrated blend of efficiency, safety, and human‑centered design, this facility demonstrates the evolution of cardiovascular care delivery, setting the standard for what CV care will come to look like in Minnesota and beyond.

A Vision Guided by Clinical Leadership

From the earliest stages of planning, Synergy worked side‑by‑side with operational and clinical leadership, including Stacy Acketz, CEO of the Surgery Center, whose hands‑on involvement helped shape the facility’s vision from concept through execution.

“Designing a cardiovascular surgery center is not just about rooms and equipment—it’s about anticipating workflows, risk mitigation, and patient confidence from the moment someone enters the space,” Acketz noted during the planning phase. Her insights into patient experience, staff efficiency, and long‑term operational scalability were critical in guiding design decisions throughout the project.

This collaborative approach—bringing together Synergy’s healthcare design expertise, SCA Health’s national ambulatory platform, Allina Health’s clinical leadership, and MHI’s cardiovascular experience—ensured the facility aligned with best‑in‑class standards while remaining adaptable for future advancements in care.

Designing Within an Existing Building Envelope

One of the project’s defining challenges was its location within a fourth‑floor, multi‑tenant medical building. Unlike ground‑up hospitals or single‑tenant surgery centers, this environment required meticulous coordination across structural, mechanical and life‑safety systems, while maintaining uninterrupted operations for neighboring tenants.

Synergy approached the project with a deep understanding of adaptive reuse and vertical healthcare design. Structural capacity was evaluated early to support heavy imaging equipment, lead shielding, and specialized surgical infrastructure. Mechanical systems were carefully zoned to meet cardiovascular air change requirements, pressure relationships, and redundancy expectations—all within the constraints of an existing building core.

Strategic planning also addressed patient and staff movement. Separate circulation paths for clean supplies, soiled materials, patients, and staff were implemented to support infection control, privacy, and efficiency—an especially critical consideration in cardiovascular surgery settings.

Two CV Procedure Suites, Purpose‑Built

At the heart of this first‑of‑its‑kind Minnesota facility are two cardiovascular procedure suites, designed to accommodate a wide range of outpatient CV interventions. Unlike traditional operating rooms, CV suites require a unique integration of imaging, surgical readiness, and sterile technique—blurring the lines between cath lab, hybrid OR, and ambulatory surgery space.

Synergy worked closely with clinical teams to define ideal room dimensions, ceiling heights, equipment clearances, and future‑proofing strategies. The suites were designed to support advanced imaging systems, booms, and anesthesia workflows while maintaining flexibility for evolving technologies.

Support spaces—including pre‑op, post‑anesthesia care, equipment storage, and staff work areas—were positioned to minimize travel distances and improve response times, allowing clinicians to focus on what matters most: patient care.

The Unique Challenges of CV Surgical Center Design

Designing a cardiovascular surgical environment presents a distinct set of challenges compared to other ambulatory facilities.

Higher Acuity in an Outpatient Setting

CV patients often present higher medical risk, requiring fast access to emergency protocols, enhanced monitoring, and robust recovery environments—all within a non‑hospital footprint.

Advanced Imaging and Infrastructure

Large imaging equipment demands structural reinforcement, vibration control, electrical redundancy, and precise coordination across disciplines.

Strict Regulatory and Life‑Safety Requirements

Cardiovascular spaces must adhere to elevated standards for airflow, sterile environments, shielding, and life‑safety systems, particularly when located within shared buildings.

Patient Confidence and Experience

Patients undergoing heart‑related procedures often arrive with heightened anxiety. Thoughtful architectural design plays a vital role in creating calm, intuitive, and reassuring environments—from daylight access and acoustics to wayfinding and privacy.

Synergy addressed these challenges by combining technical precision with intentional design strategies that support both clinical excellence and emotional well‑being.

Designing for Patients, Staff, and the Future

Beyond technical requirements, the design emphasizes a welcoming, hospitality‑inspired atmosphere that reflects the surgery center’s commitment to excellence. Natural materials, warm lighting, and clear visual cues help ease patient stress and promote a sense of trust.

Equally important is staff experience. Efficient layouts, clear sightlines, and strategically placed support spaces reduce fatigue, improve communication, and enhance safety—key factors in high‑performance cardiovascular environments.

Flexibility was embedded throughout the design. Spaces were planned with adaptability in mind, allowing the center to evolve as procedures, equipment, and care models continue to advance.

Setting a New Benchmark in Minnesota Outpatient Cardiovascular Care

As the first Ambulatory Outpatient Cardiovascular Surgery Center in Minnesota, this project sets a new benchmark for how complex heart care can be delivered safely, efficiently, and compassionately outside of traditional hospital settings.

For Synergy Architecture Studio, the project reflects the firm’s continued expertise in healthcare design and its ability to navigate complex renovations, high‑acuity clinical programs, and collaborative partnerships.

As outpatient cardiovascular care continues to expand nationwide, this center stands as a model—demonstrating that with the right vision, leadership, and design approach, even the most advanced surgical environments can thrive in an ambulatory setting.

CityPlace Medical: Where Vision Meets Velocity

Located at the epicenter of Woodbury’s dynamic mixed-use CityPlace development, CityPlace Medical provides a 50,607 SF Class A specialty medical center to patients living in the east metro and western Wisconsin. The building’s prominent location, surrounded by hotels, retail, restaurants and new housing, positions it as a medical destination in one of Minnesota’s fastest-growing suburban communities.

This multi-tenant outpatient medical building came into being when anchor tenant MNGI Digestive Health faced capacity issues at an existing clinic and approached Davis for a solution. As MNGI’s strategic real estate advisor, Davis conducted a comprehensive market assessment and identified Woodbury as the optimal market to target due to its strong demographics, growing population, and prime accessibility.

After MNGI determined that no existing space in this area provided the requisite square footage, access, and visibility they sought, Davis identified Woodbury’s CityPlace development as the ideal opportunity. Not only did this option provide a premier site in a thriving mixed-use community adjacent to the freeway, but also the most attractive cost structure (more favorable by over $500,000). There was just one challenge: MNGI needed the project complete in only eight months.

Meeting this aggressive timeline required Davis to begin construction with lease commitments in less than 40% of the available space. Through meticulously coordinated efforts between Davis and its trusted partners (Synergy Architecture Studio, Timco Construction, and the City of Woodbury), CityPlace Medical was delivered on time and on budget, proving that velocity doesn’t require compromise.

The finished product surrounds patients with natural light, warm wood tones and polished accents, creating a relaxing environment that makes guests feel right at home. The bold stone exterior and cascading glass curtain help the building stand out while complementing the surrounding mixed-use development. Designed to blend seamlessly with nearby hotels, retail and restaurants, CityPlace Medical features sharp linear lines, honed stone, and walls of glass that connect patients visually to the lush landscape outside.

Today, CityPlace Medical is the home of MNGI Digestive Health, Associated Eye Care and Skin Artisans Edina Plastic Surgery, further establishing itself as a major medical hub in the eastern Twin Cities. Its success also set the stage for the subsequent CityPlace II and CityPlace III developments, proving that strategic site selection, rapid execution, and quality design don’t just deliver one building—they create entire healthcare destinations.

Outpatient Care: What the Latest Headlines Get Right (and Wrong)

If your LinkedIn feed looks anything like ours lately, you’ve seen no shortage of posts about the shift to outpatient care. Lower costs! Better patient experience! The future of healthcare delivery! And they’re not wrong. Outpatient migration is real, it’s accelerating, and its reshaping healthcare real estate.

But after more than four decades and thousands of transactions in this space, we’re in a good position to say this isn’t new, but it is nuanced.

What They Get Right

The fundamentals driving outpatient migration are real. Technology continues to enable more procedures and services outside traditional hospital settings. Patients genuinely prefer convenient, accessible care closer to where they live and work. And while healthcare systems—particularly here in Minnesota—remain cost-sensitive and thoughtful about expansion decisions, the strategic shift toward outpatient delivery continues to gain momentum. The trend is legitimate, well-documented, and likely irreversible.

What We See Differently

This is not a new trend.

In fact, we’ve seen significant outpatient, off-campus development for over a decade! Some visionary groups have been benefiting from and scaling this strategy.

Consider MNGI Digestive Health’s expansion into Woodbury—not on a hospital campus, but at the site of a major redevelopment of a former State Farm headquarters now known as CityPlace. In their search for optimal space, location strategy focused on specific factors: freeway adjacency, proximity to a retail hub, and access to strong patient demand in both Woodbury and Western Wisconsin markets. MNGI’s commitment to anchor the building with less than 50% pre-leased reflected confidence that the location would drive patient volumes and practice growth.

When we conducted a full metropolitan site selection process for Shriners Children’s to relocate its ambulatory services from its hospital campus, that same Woodbury location was selected. This wasn’t about convenience alone; it was about referral access, demographics, visibility, and positioning within a growing medical hub.

Or take North Memorial’s search for space in Minnetonka. After nearly a year of searching with another firm yielded nothing suitable in their target market, Davis stepped in and shifted the focus from what was available to identifying the ideal location. That required assembling seven parcels—only one of which was on the market—in a mature market with excellent demographic indicators. The site filled a critical gap in North Memorial’s market coverage, positioning them to serve an underserved area with strong patient demand. Today, more than 10 years after opening, the Minnetonka Medical Center houses North Memorial’s primary care, urgent care, and surgery center—proof that the right location, even when difficult to secure, creates lasting value and supports multiple service lines.

The lesson: The best outpatient locations often require creativity, persistence, and strategic thinking, not just browsing available listings. Demographics, referral patterns, visibility, access, and even community relationships all factor into whether a location truly succeeds.

Cost is Just One Part of the Equation

Everything is more expensive than it was five years ago, and moving to a new clinic is no exception. Construction costs have increased dramatically, financing is more expensive, and rental rates that seemed unthinkable a few years ago are now necessary to make deals pencil.

The smart groups are deliberate about where they go and looking at revenue, not just costs. They’re thinking through creative approaches to making economics work and increasingly recognizing that “expensive” is relative.

Opportunity Cost Considerations:

  • What’s the cost of not expanding to meet demand?
  • What’s the cost of constrained hospital capacity or limited access to quality space?
  • What’s the opportunity cost of ceding market share to competitors willing to make the investment?

Revenue Growth Opportunities:

  • How much additional revenue could we generate in an efficient facility in a growing market?
  • How much could we reduce our staff turnover with a facility that supports them?
  • How many more patients would come to our site that’s easy to access and instills confidence in the quality of care they’ll receive?

Care delivery and profit are the ultimate goals. Sometimes a higher cost alternative is the way to achieve those goals.

The Bottom Line

Our 2025 data showed groups focusing on optimization over expansion, with renewals outnumbering new leases as organizations maximized existing footprints rather than taking on new space. But that strategy only works for so long. At some point, genuine growth needs require new locations, and the current supply-constrained market means groups can’t afford to wait for perfect conditions or perfect pricing.

After decades in this space, we’ve learned that successful outpatient projects aren’t just about following trends, they’re about fundamentals that don’t make headlines: rigorous demographic analysis, understanding referral networks, realistic pro formas, persistent site acquisition, and location decisions that support both patient access and operational viability. The economics may be challenging, but when weighed against the alternatives, the math often favors those willing to think creatively about making projects pencil.

The trend is real. The opportunity is real. But so is the need for sophistication and expert guidance.

Own, Lease, or Partner: What’s Right for Your Practice?

The administrator of a large specialty practice once shared that she had 50 priorities in her field of vision and real estate was not one of them. Unless there is a pending lease expiration or strategic initiative to open a new site, real estate strategy was not top of mind. 

As most medical practices will eventually confront a lease expiration or a strategic initiative, it is essential they establish a defined set of real estate principles to avoid becoming a passive player in an important decision that will have significant financial implications for a decade or more. All groups should develop an organized framework to best ensure real estate decisions align with the practice’s strategic, operational and financial objectives. 

When it comes to real estate, medical groups typically fall into one of three categories: 

Owners
Practice owns all its real estate either directly or through a real estate partnership.  Motivation is generally financial as practice views the real estate as an investment opportunity with good short-term returns and as part of the physician owners’ retirement plan.

Renters
Practice rents all its real estate from third parties. Common reasons include:
• a larger group size where real estate returns aren’t material to individual partners
• recruitment concerns about requiring multiple buy-ins
• location constraints in mature markets where ownership options are limited

Opportunistic Investors
Practice is agnostic in terms of real estate ownership, looking at each opportunity through a lens of what best decision aligns with the business plans and goals of the practice.

The 15-Year Rule

From a financial perspective, ownership is attractive if the group has a high degree of confidence that the building will serve its needs for 15 years or more. Most analysis suggests that it takes at least this length of time before ownership is financially advantageous over leasing. Deciding to own requires a trifecta of confidence: in the market, building location, and building size. If any of these factors are uncertain, the practice would be better positioned to lease so that it could relocate, consolidate, downsize or expand if the need arises when the lease term expires. 

In addition to long-term confidence in the real estate investment, groups should have full buy-in from all physician partners. Practices that have different ownership structures between the clinic and the real estate partnership may encounter conflicting interests. The practice could want to pursue a strategy that is not advantageous to the real estate partnership such as downsizing or relocation. Best practice to avoid such a scenario is to only allow active physicians to be in the real estate partnership and require all physician partners to be equal investors in the real estate partnership.

Collaborative Planning

Groups intending to be real estate owners generally start the process one of two ways: on their own or in partnership with a real estate professional. Although certainly not required, partnering with a healthcare-focused real estate professional is highly recommended for transactions of this scale. Buying and/or developing within the medical market is a multi-million-dollar transaction requiring a high degree of sophistication, so collaboration is often a strategic necessity.

The real estate professional will facilitate:

  • Due diligence
  • Governmental approval process
  • Financing
  • Legal documentation
  • Consultant engagement (architect, contractor)

Although these services can be contracted on a fee basis with a developer, partnering with the developer on ownership affords the clinic with the optimal financial structure. The developer will deliver both cash for the equity investment and banking relationships that bring much more favorable terms than if the clinic were to finance the real estate on its own. 

The Davis Approach

The key to successfully implementing a real estate strategy is partnering with the right real estate professional. With a focus only on healthcare real estate and an approach that optimizes the objectives of its clients, Davis is positioned to be the ideal real estate partner for a variety of healthcare organizations and specialty medical clients.

Davis has completed 40 medical outpatient developments (from 10,000 to 150,000 square feet) and 65 healthcare-related investment/acquisition transactions (totaling $989M in value). Davis shapes its role around the objectives of its practice clients—developing for the client, in partnership with the client, or providing its expertise on a fee basis for the client. 

Ready to make real estate a strategic advantage instead of an afterthought? Email Michael Sharpe at msharpe@davishre.com to start the conversation.

Healthcare Real Estate 2026: Strong Fundamentals Meet Market Opportunity

The outlook for healthcare real estate (HRE) in 2026 and beyond is broadly optimistic, though tempered by lingering market and policy uncertainty. Fundamentals remain strong: national occupancy is near 93%, rental rates are rising 3–5% annually depending on market, and construction activity remains below historical norms. With interest rates expected to trend downward in 2026, capital markets activity is likely to accelerate.

Healthcare Industry Overview

Rising Spending Masked by Reimbursement and Labor Pressures

Any assessment of healthcare must account for mounting operational pressures and policy uncertainty, both of which directly influence healthcare systems’ real estate strategies.

Healthcare spending continues to grow at record levels, with total U.S. expenditures estimated at $5.25–$5.3 trillion in 2024—more than 8% annual growth and well above GDP. Spending now represents approximately 18% of GDP and is projected to exceed 20% by 2033. Growth is driven by increased utilization, technological advancements (including AI), and inelastic demand from an aging population. At the same time, rising costs are intensifying concerns around affordability and long-term sustainability.

Labor remains the industry’s largest and most volatile expense, accounting for 50–60% of provider costs. Workforce shortages and intense competition have driven higher wages, signing bonuses, and enhanced benefits. While automation and AI offer long-term potential, the capital required for implementation restrains near-term adoption. Balancing labor costs with quality care will remain one of the industry’s most complex challenges.

Despite historic spending levels, reimbursement uncertainty persists. Hospitals face evolving government policies, shifting payer mixes, value-based care transitions, and rising technology costs—all of which complicate revenue forecasting and long-term planning. As a result, many healthcare systems are taking a conservative approach to real estate decisions, including consolidating into owned facilities, reducing space commitments, or delaying action until greater clarity emerges.

Market Conditions

The same forces shaping healthcare operations are influencing HRE fundamentals. Occupancy and rental rates continue to rise, while new supply remains constrained. These conditions set the stage for tighter markets and increased competition for high-quality assets heading into 2026.

2026 Outlook and Predictions

Limited Availability Will Constrain Expansion

National occupancy climbed to approximately 92.7% in 2025 and is expected to rise further in 2026. In many markets, expansion and relocation options will be limited. Replacement space, where available, will command premium pricing due to surging costs in raw material and construction over the last few years.

Midwest ENT • Lakeville, MN

Supply Constraints Will Drive Rental Growth

Strong tenant demand combined with modest new deliveries will continue to push rents higher. New clinical developments in markets such as Minneapolis are expected to command $35–$40/SF NNN, with surgical space exceeding $40/SF NNN. Tenant improvement allowances for full buildouts now range from $80–$100/SF representing an increase of $10–$15/SF above pre-pandemic levels. Annual rent growth has moved above 3% and is expected to track inflation, which the FED is forecasting to remain elevated relative to historical norms.

Cost Pressures Force Users to Reconsider Strategy

Healthcare users accustomed to leasing existing space are increasingly experiencing sticker shock as development, leasing, and property tax costs rise. In high-tax markets such as Minneapolis, occupancy costs can squeeze operating margins, prompting users to reassess expansion plans and explore alternative strategies.

Capital Markets Strengthen as Rates Decline

As of December 2025, the Federal Reserve’s target rate stands at 3.50%–3.75%, with expectations for one to two additional cuts in 2026. Cap rates are already compressing, with trophy assets trading in the high-5% range and stabilized outpatient facilities generally between 6.0% and 8%, depending on asset quality and tenant credit.

Further rate cuts should accelerate cap rate compression, particularly for high-quality and credit-backed assets. Credit STNL transactions are expected to trade in the mid-6% cap range, while large portfolio sales may push into the high-5% cap range for the first time since early 2022. Declining bank spreads and more favorable loan terms will further enhance deal economics.

Construction Costs Remain Elevated

Healthcare construction costs continue to outpace other sectors, driven by sustained demand for modern facilities and lingering supply-chain constraints. While slower development activity has eased competition for labor and materials, pricing has yet to meaningfully decline. Absent a broader economic downturn, material reductions in construction costs appear unlikely. Long-term tariff risks—particularly involving steel, concrete, and lumber—could further pressure pricing.

Deal Activity Accelerates

Capital that retreated following the rate spike in 2022 is returning as conditions improve. Owners previously constrained by refinancing challenges are beginning to see relief, and deal velocity is expected to rise through 2026 and 2027. Large portfolios are increasingly coming to market, supported by strong institutional demand and modest cap rate premiums that are once again sufficient to spur activity.

Looking Ahead

Healthcare real estate remains a fundamentally “need-based” asset class, supported by demographic trends, inelastic demand, and the ongoing shift toward outpatient and community-based care. While the healthcare industry faces meaningful operational and reimbursement challenges, these dynamics have not diminished the long-term demand for well-located, high-quality medical facilities.

Rather than serving merely as a defensive allocation, healthcare real estate has matured into a core investment asset—one positioned for sustained relevance and growth as the U.S. population ages and care delivery continues to evolve.

MHealth Fairview Clinics & Specialty Center – Maplewood

Davis’ development of the MHealth Fairview Clinics & Specialty Center (formerly known as HealthEast Clinic & Specialty Center) in Maplewood, MN exemplifies responsive, demand-driven healthcare real estate practices. Located on Hazelwood Street adjacent to MHealth Fairview St. John’s Hospital, this medical outpatient building is the result of careful planning, adaptive development, and a commitment to creating healthcare infrastructure that fundamentally improves how communities access care.

The project began when HealthEast sought to consolidate clinics that had been spread across its vast hospital campus and multiple nearby medical buildings, challenging Davis to deliver a solution that elevated both operational efficiencies and the patient experience.

Originally envisioned as an 80,000-square-foot building, the project expanded twice during construction—first to 120,000 square feet and ultimately to 148,000 square feet—to accommodate growing demand for tenancy. Executing these expansions presented significant obstacles but Davis was up for the challenge.

Davis negotiated a lease framework that provided HealthEast with flexibility to add space on the same terms and conditions as its original commitment. Then, when HealthEast sought to expand its space shortly after construction commenced, Davis coordinated with HealthEast’s finance team to restructure the lease in a manner that ensured the total space commitment qualified as an operating lease rather than a capital lease.

Expanding the building footprint twice while it was under construction required Davis to secure approvals from the Maplewood Planning Commission and City Council on two separate occasions, all while ensuring HealthEast’s 122,000 square feet of tenant space opened on schedule. The final 26,000 square feet remained unleased during construction, but the Davis brokerage team quickly brought the building to 100% occupancy by targeting specialty groups that complemented the existing service mix—a remarkable achievement reflecting exceptional collaboration across Davis’ development, brokerage, design and construction teams.

In order to create an environment that thoughtfully balances functionality with comfort and feels both efficient and inviting from the moment patients arrive, Davis installed expansive floor-to-ceiling windows and high ceilings to flood the building with natural light. The building is further outfitted with modern finishes, clean architectural lines and cozy seating spaces to exude a calm, comforting energy throughout the space. High-end amenities such as a player piano and crackling fireplace accentuate this vibe further, signaling Davis’ proclivity to provide elevated healthcare experiences crafted with intention.

Today, post  HealthEast-Fairview merger, the MHealth Fairview Clinics & Specialty Center serves as a conveniently located community medical center providing specialty and primary services under one roof. Patients can complete diagnostic testing or health screenings through onsite lab services and pick up prescriptions immediately at the Fairview pharmacy, eliminating the need for additional stops and allowing care to continue seamlessly beyond the exam room.

Perhaps most valuable is the clinic’s strategic location across the street from MHealth Fairview St. John’s Hospital. This proximity allows providers to seamlessly refer patients requiring specialty care or more intensive treatment, while maintaining a standalone off-campus location for routine procedures; a convenience that translates to optimal accessibility, heightened exposure and an organically growing patient base.

Through close collaboration with HealthEast and responsive decision-making at every stage—from the unprecedented expansions during construction to the careful balance of functionality and patient experience—Davis delivered more than a building. The result is a healthcare destination that demonstrates what’s possible when real estate evolves with community needs, setting a new standard for suburban healthcare delivery while continuing to serve providers and patients effectively years after opening day.

InterMed Expands and Extends Lease at 84 Marginal Way in Portland, Maine; Multi-Specialty Physician Group is Sole Occupant of Medical Building

Portland, ME — February 2026 — Davis, a national healthcare real estate firm operating out of Minneapolis, MN, announced the successful expansion and long-term lease extension of InterMed at 84 Marginal Way, a prominent Class A outpatient medical property located in Portland’s Bayside neighborhood. The transaction secures 102,557 square feet across 10 stories, and includes structured parking, under a new 16-year lease term.

“The transaction underscores Davis’ philosophy of investing in high-quality, mission-critical assets and supporting essential healthcare infrastructure within the Portland market and around the country,” said Stewart Davis, Executive Vice President, Davis.

Davis acquired the property in 2021 with a strategic business plan to convert existing general office space into medical use. This lease expansion and extension fulfills that vision. InterMed, the building’s longstanding clinical user and one of Maine’s leading healthcare providers, is adding an approximate 34,000-square foot block of space being vacated by a law firm and will occupy 100% of the building.

With InterMed’s expansion, the property becomes the premier healthcare building in downtown Portland and serves as InterMed’s flagship location in the state of Maine. As part of its long-term commitment, InterMed will consolidate several existing clinical specialties into the building, enhancing operational efficiency while delivering a centralized, state-of-the-art care environment for patients and providers.

InterMed’s long-term commitment underscores the strength of the location and the continued demand for outpatient clinical space in Greater Portland.

“It isn’t often that you see a physician group like InterMed leasing an entire vertical structure in a market the size of Portland,” said Davis. “Yet this is a unique situation, and it created a unique opportunity for our acquisition in 2021 and for InterMed’s lease expansion now.

According to Davis, downtown Portland, an economic driver for the state, sits on a peninsula with a scarcity of available land around it. That and its status as one of the few buildings with attached structured parking, makes it an extremely attractive signature property. 

InterMed was represented by the team of Katie Breggia and Tom Moulton of The Dunham Group.

2025 Year in Review: Healthcare Architecture

2025 was a transformative year for Synergy Architecture Studio as our healthcare practice aligned with some of the most significant shifts the industry has seen in a decade. Healthcare systems continued to evolve rapidly, and our work rose to meet that momentum — blending research, empathy, and innovation to create environments that support healing in a changing world. This year reaffirmed our belief that thoughtful design is a powerful form of care.

Designing for a New Era of Care Delivery

Healthcare delivery models continued to diversify in 2025, and our projects reflected that shift. We saw a growing demand for flexible, modular spaces that adapt to fluctuating patient volumes, new technologies, and evolving clinical workflows. Universal exam rooms, acuity‑adaptable patient spaces, and plug‑and‑play infrastructure became essential tools in our design vocabulary.

A major milestone this year was the completion of design and the start of construction on the Osceola Medical Center remodel and expansion, a transformative project for a rural hospital campus serving a broad regional community. This effort embodies the future of rural healthcare, creating a more efficient, patient‑centered environment while strengthening access to essential services close to home. The project integrates modernized clinical spaces, improved circulation, and expanded service lines, all while honoring the character and needs of the community it serves.

Human‑Centered Environments Rooted in Wellness

One of the most powerful trends of 2025 was the continued rise of biophilic and restorative design in healthcare. Natural light, views to nature, and calming materials played a central role in our work, helping reduce stress and improve patient outcomes.

Outpatient care also expanded dramatically across our portfolio. Our ambulatory and specialty care projects embraced the trend toward distributed, community‑based care, creating environments that are efficient, intuitive, and welcoming; spaces that feel less like institutions and more like places of support.

Behavioral health environments were another major focus. We applied trauma‑informed design principles — safety, choice, transparency, and empowerment — to create spaces that support emotional well‑being while maintaining the necessary levels of protection and privacy. These environments demonstrated that healing spaces can be both secure and deeply humane.

Technology‑Forward, Future‑Ready Facilities

Technology integration accelerated across the healthcare sector in 2025. Our designs anticipated this shift by embedding digital infrastructure, telehealth‑ready spaces, and smart building systems that enhance both patient experience and operational efficiency.

AI‑supported diagnostics, virtual care pods, and real‑time location systems (RTLS) influenced everything from room layouts to circulation patterns. Rather than treating technology as an add‑on, we treated it as a core design driver — shaping environments that are ready for the next generation of care.

Sustainability and Resilience as Standard Practice

Sustainability took on new urgency in 2025, and Synergy Architecture Studio responded with a deeper, more holistic approach to environmental stewardship. We continued to integrate low‑carbon materials, high‑performance envelopes, and energy‑efficient systems, but this year we also expanded our focus to include ecological health and biodiversity.

A standout initiative was the incorporation of bee hives and native planting strategies into three major healthcare projects — Lakeville Medical, Eagan Specialty Center, and Xchange Medical. These landscapes do more than beautify a site; they restore pollinator habitats, support local ecosystems, and create healing outdoor environments for patients and staff. By pairing native plantings with managed hives, these campuses now serve as living demonstrations of how healthcare facilities can contribute to environmental resilience.

Resilience planning also remained a priority. Climate‑responsive site strategies, redundant power systems, and adaptable mechanical zones helped ensure that our facilities are prepared for both immediate disruptions and long‑term environmental change.

A Team Driven by Purpose

Within our studio, 2025 was a year of growth and shared learning. We expanded our healthcare expertise, welcomed new voices, and invested in research that deepened our understanding of patient experience, staff well‑being, and emerging care models. Our team’s passion fueled every milestone, from early concept sketches to final occupancy.

Stepping into 2026, we carry forward a renewed sense of purpose. The healthcare landscape will continue to evolve, and Synergy Architecture Studio is ready to evolve with it, designing spaces that are flexible, compassionate, technologically advanced, and deeply human.

We are also expanding our geographical project footprint, beginning with a new ambulatory surgery center in Fort Wayne, Indiana. This project marks an exciting step into a growing region and reflects our commitment to supporting high‑quality care in communities across the Midwest and beyond.

The year ahead promises new challenges and new opportunities, but our mission remains constant: to shape environments that elevate care and strengthen communities, one thoughtful space at a time.

From Real Estate to Real Impact: Davis Joins the Fight Against Hunger

At Davis, we believe that strong communities are built on connection, compassion and action. Each year, we partner with local nonprofits to put those values into practice—making a lasting difference in the communities we serve.

Recently, this mission brought us to Second Harvest Heartland, where our team volunteered their time to pack nutritious meal kits for local families, helping ensure our most vulnerable neighbors have one less worry at dinner time.

In just two hours, the Davis team packed 226 boxes of apples, helping to create 520 meal kits for local food shelf distribution. That’s enough to feed 20 families every day for an entire year, and a tangible reminder of how much we can accomplish when we work together.

Partnering to Nourish Communities

The hard truth is that food insecurity can feel invisible until it’s right next door. In Minnesota, a staggering 1 in 5 households experienced food insecurity in 2025, with families reporting wildly different causes. For some, hunger is a chronic challenge brought on by wages that can’t keep up with inflation. For others, it’s a sudden crisis caused by an unexpected bill or medical emergency.

Last year, 18% of Minnesotans turned to the state’s emergency food system for help; a sobering record that underscores how critical the work of organizations like Second Harvest Heartland truly is. As one of the nation’s largest food banks, Second Harvest serves 59 counties across Minnesota and western Wisconsin, restoring stability and dignity to thousands of households in crisis each year.

For our team at Davis, lending a few hours to help pack meals was more than a team-building exercise—it was a way to live out our company’s commitment to community care. As we packed each box, we were reminded that hunger isn’t a distant issue. Hunger affects families, co-workers, and neighbors alike. By partnering with Second Harvest Heartland, we are choosing to be a part of the solution, helping to ensure every family has access to the food and stability they deserve.

How You Can Help

There’s a role for everyone in ending hunger. You can volunteer your time, make a donation, or lend your voice to advocate for policies that reduce food insecurity. Every meal packed, every dollar donated, and every hour volunteered adds up to something bigger—a community where everyone has enough.

At Davis, we’re proud to do our part and we invite you to join us. Second Harvest Heartland offers many impactful ways to get involved:

  • Volunteer: Help sort, label, weigh, and pack food for distribution in our community.

  • Host a Fundraiser: Virtual giving enables people to help end hunger from anywhere in the world. Hosting a fund drive is as easy as it is impactful.

  • Make a Monetary Donation: Financial contributions help fund the sourcing and distribution of food, launch innovative programs, and connect our neighbors to community resources.

  • Make a Food Donation: Donations from growers, retailers, and industry partners reduce waste and fuel impact.

  • Help Spread Awareness: Share volunteer opportunities with your network—many people want to help but simply don’t know where to start.

Together, let’s create a future where no one goes hungry, and where compassion and connection are the foundation of every neighborhood. Visit https://www.2harvest.org/ to learn more and start making a difference today.