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The Strategic Partnership: How Expert Marketing, Leasing, and Property Management Drive Success in Healthcare Real Estate

Medical outpatient buildings (MOBs) represent a $500 billion asset class in the US, one that has demonstrated remarkable stability, maintaining occupancy rates between 91-92% over the past 14 years according to Revista’s industry data covering 150 million square feet, and 86.1% tenant retention rate in 2025. These strong fundamentals reflect the unique characteristics of healthcare real estate that differentiate it from conventional office properties. The question for investors is whether their management approach accounts for the specialized requirements that drive these performance metrics. If not, you could be putting your asset, and returns, at risk. In the competitive landscape of healthcare commercial real estate, the difference between a thriving medical building and an underperforming asset often comes down to one critical factor: the strength of your marketing, leasing, and property management team.

As healthcare delivery continues to evolve toward outpatient care models, the role of these specialized professionals has become more vital than ever in ensuring tenant satisfaction, optimizing patient experiences, and maximizing asset value for investors.

Understanding the Healthcare Real Estate Ecosystem

Outpatient medical buildings represent a unique segment of commercial real estate, where traditional property management principles intersect with the specialized needs of healthcare providers and their patients.

Unlike conventional office buildings, medical buildings require teams that understand HIPAA compliance, infection control protocols, specialized infrastructure needs, and the critical importance of operational continuity in healthcare delivery.

The Davis Development, Investment, Brokerage and Property Management teams collaborated to deliver this expansive 3-story MOB in Maplewood, MN. Through the successful execution of this project, HealthEast was able to consolidate various ambulatory clinics into one state-of-the-art medical hub that improved patient satisfaction and organizational efficiencies. Davis quickly completed the lease up to deliver a fully-leased investment asset to its investor partners.

The Marketing and Leasing Advantage

Medical buildings function as healthcare ecosystems where the built environment, tenant mix, and services directly impact individual practice success—a dynamic that makes strategic leasing far more consequential than in traditional commercial real estate. The importance of maintaining full occupancy extends beyond typical landlord concerns about rental income: partially occupied medical buildings create operational challenges that hurt both property performance and tenant success.

For landlords, vacant medical space is particularly costly. Empty suites in medical buildings often require specialized tenant improvements and longer lease-up periods than conventional office space, while partially occupied buildings struggle to achieve the patient volumes that make remaining tenants financially viable.

For tenants, building occupancy levels directly affect practice viability. Medical professionals depend on cross-referrals, shared patient populations, and the convenience factor that draws patients to comprehensive care locations. A half-empty medical building signals market problems to both patients and referring physicians, potentially damaging the reputation and patient flow of remaining tenants. Conversely, fully occupied buildings with complementary practices create environments where patients can access multiple services in one location, benefiting all tenants.

Market Intelligence and Positioning

Healthcare-focused leasing professionals maintain relationships with hospital systems, physician groups, and emerging healthcare delivery models that general commercial brokers typically lack. They understand market dynamics like which specialties face reimbursement pressures, which are expanding, and how regulatory changes affect space requirements. This intelligence enables proactive tenant recruitment and lease structuring that anticipates rather than reacts to market shifts.

The financial impact is reflected in industry fundamentals: medical buildings maintain 91.3% occupancy rates while achieving NOI margins of 66.2%—performance that depends heavily on achieving and maintaining the full occupancy that creates value for both landlords and tenants.

Property Management Excellence in Healthcare Settings

Medical buildings require property management teams that understand healthcare-specific challenges: HIPAA compliance, infection control protocols, specialized infrastructure, and the critical importance of uninterrupted operations for patient care and safety.

Healthcare providers cannot afford operational disruptions. A malfunctioning HVAC system or power outage in a medical building can directly impact patient care. Specialized property management teams implement proactive maintenance programs, maintain relationships with healthcare-certified contractors, and ensure 24/7 responsiveness to critical issues while staying current with healthcare facility regulations, ADA compliance, and infection control standards.

Property management teams that understand healthcare create environments that support both patient experience and tenant operations through effective wayfinding, comfortable common areas, adequate parking, and seamless facility operations.

Long-Term Partnership Benefits

Integrated Team Coordination

The complexity of healthcare real estate requires seamless coordination between leasing and property management teams that goes beyond traditional commercial real estate operations. Unlike conventional office buildings where these functions operate relatively independently, medical buildings demand integrated strategies where leasing decisions directly impact operational requirements and vice versa.

For example, when leasing to a new radiology practice, the property management team must coordinate specialized infrastructure upgrades (lead-lined walls, enhanced electrical systems, reinforced flooring to handle the load, etc) while the leasing team structures tenant improvement allowances and lease terms and language that account for these unique requirements. Similarly, property managers must understand tenant lease terms to anticipate infrastructure needs – a departing surgical center requires different decommissioning and re-leasing preparation than a departing general practitioner, affecting both timeline and capital requirements.

Communication and Market Intelligence Sharing

Property management teams often serve as early warning systems for leasing challenges, identifying tenant financial distress, space utilization changes, or expansion needs before they become formal leasing decisions. Conversely, leasing teams provide market intelligence about emerging healthcare delivery trends, regulatory changes, and competitive dynamics that inform property management’s capital planning and operational strategies.

Tenant Retention and Expansion

Healthcare providers invest significantly in establishing their practices within a building. A responsive, knowledgeable property management team becomes a valued partner in their success, leading to higher tenant retention rates and expansion opportunities within the property.

Conclusion

In healthcare real estate, success is measured not just in financial returns but in the ability to support quality healthcare delivery within the communities we serve. The specialized expertise of dedicated marketing, leasing, and property management teams creates a foundation for this success, driving tenant satisfaction, enhancing patient experiences, and ultimately maximizing asset value for investors.

As the healthcare industry continues its shift toward outpatient care models and value-based delivery systems, the importance of these specialized real estate services will only continue to grow. Investors who recognize this reality and partner with experienced healthcare real estate professionals position themselves for sustained success in this dynamic and essential market sector.

The investment in expert marketing, leasing, and property management isn’t just a cost of doing business, it’s a strategic advantage that creates lasting value for all stakeholders in the healthcare real estate ecosystem.


Davis Brings Specialized Care to Maple Grove

In the heart of Maple Grove’s bustling medical corridor, Maple Grove Specialty Center exemplifies how strategic healthcare development elevates communities. This stunning 44,060 SF multi-tenant outpatient medical building, represents more than just another healthcare facility—it’s the result of careful market analysis, bold decision-making, and a commitment to serving patients where they need care most.

This two-story Class A medical building was developed to address a challenge familiar to many growing healthcare organizations. MNGI Digestive Health was facing capacity constraints at their existing locations while simultaneously navigating the complexities of a joint venture termination. They needed a strategic solution that would not only accommodate displaced patient volume but also position them for continued growth in the competitive northwest metro market.

What made this project particularly compelling was its location. Situated at 10150 Niagara Lane North, directly off Highway 610 and Maple Grove Parkway, the site offers exceptional visibility and accessibility for patients throughout the region. Davis recognized early on that this prime location could serve as a gateway for patients traveling from as far as St. Cloud, an hour to the northwest, filling a crucial gap in MNGI’s service area.

The development process required both tenacity and calculated risk. To meet MNGI’s urgent timeline needs, Davis made the bold decision to begin construction with only 50% of the building pre-leased. This speculative approach carried significant financial risk, but was essential to meet MNGI’s delivery requirements. With our specialized marketing and leasing efforts, the remaining space was leased to Minnesota Oncology, a healthcare provider offering complementary services that enhanced the building’s overall patient care capabilities.

Today, Maple Grove Specialty Center showcases the timeless appeal of brick construction, enhanced by subtle corbel details and a syncopated rhythm of windows that wrap the building’s façade. Its unique construction truly commands attention from every angle, giving the building exterior a striking presence that feels both substantial and welcoming.

Inside, natural light floods through strategically placed floor-to-ceiling windows, creating an open and airy atmosphere throughout the common areas. The covered building entrance, positioned to capture abundant western light, establishes a warm and inviting first impression for patients and visitors alike. These design choices weren’t merely aesthetic—they reflect a deep understanding of how the built environment can reduce anxiety and promote healing for patients navigating medical care.

What’s more, the building’s commitment to sustainability runs deeper than its visual appeal. Behind the timeless brick façade lies a forward-thinking building insulation system supported by Low-E glazing. Combined with high-performance mechanical, plumbing, and electrical systems, Maple Grove Specialty Center exceeds current building energy standards by an impressive 14%. This environmental consciousness extends to the building’s integration with the surrounding landscape, featuring thoughtfully designed landscaping that complements the structure while providing green space for the community.

Perhaps most importantly, this outpatient medical building has exceeded all expectations for patient utilization and market impact. Despite being new to the market, Maple Grove Specialty Center has become MNGI’s second-busiest location in less than a year of operation. Its strategic position along Highway 94 has successfully attracted the intended market population, validating the careful demographic and traffic-pattern analysis that informed the site selection process.

The project’s success reflects Davis’ comprehensive approach to healthcare real estate development. By mapping existing MNGI locations against competitor facilities, analyzing patient home locations, and identifying portfolio gaps through demographic trend analysis, the team ensured that Maple Grove Specialty Center would serve a genuine market need rather than simply adding capacity for its own sake.

As the northwest metro continues its rapid growth, developments like Maple Grove Specialty Center will play an increasingly vital role in ensuring that high-quality healthcare remains accessible to all residents. This development stands as a testament to what can be achieved when expertise and strategic vision align, exemplifying Davis’ commitment to anticipating community needs and delivering lasting value. Maple Grove Specialty Center is more than a medical building; it is an exceptional healthcare environment that will serve patients, providers, and the broader healthcare ecosystem for decades to come.

Designing for Success: How Efficient Surgical Centers Create Better Outcomes

The prospect of surgical intervention can be overwhelming for patients. While a great deal of attention is given to the comfort and flow of patients through these spaces, the provider and their tools are rarely on the periphery of the overall design. At Synergy Architecture Studio, we believe successful outcomes within an Ambulatory Surgery Center (ASC) are best achieved by providing efficient, well-choreographed spaces for patients and providers alike.

When working with Synergy, specialized design details begin in the lobby. Here, we consistently implement seating ‘vignettes’ so patients and waiting family members can wait in modern comfort with ample access to staff and information.

Reception desks are also designed for efficient workflow and staff safety. After check-in, patient travel through the suite can be simply described as a linear path, or “one-way”, towards (ideally) individualized pre-op rooms. At Synergy we’ve seen time and time again that individual rooms elevate surgical efficiencies as they provide a private space for patient contemplation and provider preparatory work, building mutual confidence and expediting the overall process.

Bays of these private surgical spaces are intentionally oriented around a nurse station dedicated to pre-op activities, further limiting the travel distance between patient and provider, while giving both ideal visual access to one another.

From pre-op, this one-way patient journey continues into the operating room to undergo their procedure. Here, provider movements and experience become the focus. When working with Synergy, operating rooms are regularly designed to exceed the planning strategies developed by the Facility Guidelines Institute in close collaboration with the providers who will be working at the ASC. While operating room layouts can be highly specific to each individual specialty, overall operating rooms must be developed to be both immediately functional and adaptable for future functionality as the use of robotics, imaging, and minimally invasive techniques during surgery continue to develop across a broad range of procedures.

Our strategy is to orient multiple operating rooms around a central corridor to ensure a safe, sterile and efficient flow of instruments, information, equipment, anesthesiologists, surgeons and nurses. These efficiencies are continuously tested and developed during planning to minimize physical distance between providers, equipment, supplies, and the operating table both reducing provider fatigue and the procedural timeline.

After surgery, the patient’s one-way journey moves to post-op where, similarly to pre-op, the patient is provided with a comfortable and functional space to begin their recovery. We generally incorporate a dedicated patient exit to provide a more direct, private, and dignified path as the patient prepares to continue their recovery at home. 

When design strategy aligns with clinical excellence, everyone benefits. That’s why at Synergy, our architects design spaces that prioritize efficiency at every touchpoint alongside our users. By reducing physical distances, optimizing workflow, and anticipating future technological advances, our ASCs deliver various measurable benefits including reduced staff fatigue, improved patient turnover, lower operating costs and, most importantly, better surgical outcomes. Our strategy ensures patients receive exceptional care in a comforting environment, and that providers are able to perform in spaces that wholly support their ongoing success.

Building Brighter Futures: Our School Supplies Drive with United Way

At Davis we’re accustomed to developing spaces where people and communities can thrive, and this fall we channeled that energy into building something new: educational foundations for local students. According to the United Way, 1 in 10 students return to school each year without a backpack and adequate school supplies. In fact, in the Greater Twin Cities area alone, more than 100,000 students enter school empty-handed, arriving without even the most basic educational items.

For many families, back-to-school necessities bring significant financial stress as raising children today is more challenging than ever before. In the Twin Cities metro area, the cost of raising a child now averages over $30,000 annually—a figure that includes childcare, housing, food, medical expenses, and transportation. With childcare alone costing nearly $19,000 per year per child in the Minneapolis metro, families are facing unprecedented financial pressure so any additional expense, even school supplies, becomes a genuine burden.

At Davis we understand that strong foundations are essential for any building project. This is also true for children being developed into life-long learners. When a child walks into the classroom with the supplies they need, they’re prepared to do more than just learn; They’re also equipped with the dignity and confidence necessary to cultivate positive peer relationships and feel like they belong. So we decided to team up and make a difference.

Our team purchased enough school supplies to create back-to-school kits for 30 local students, packing everything from #2 pencils, markers and crayons to college ruled notebooks and scientific calculators. As our team generated each kit, we reflected on the impact our efforts would have on individual students and their families.

This experience reinforced our belief that being the change we wish to see requires more than good intentions—it demands action. By researching the need, investing our resources, and dedicating our time, we demonstrated our commitment to supporting vulnerable populations in our community; That’s the #DavisDifference.

Looking Forward

Our school supplies drive reminded us that meaningful change happens when we move beyond awareness to action. It’s one thing to understand that 10% of our local students lack adequate school supplies, but it’s another to roll up our sleeves and choose to do something about it. The Greater Twin Cities United Way has spent generations bringing together people who believe in creating a community where all people thrive, regardless of income, race, or place. Our school supplies drive was just one small part of that larger mission, but it was our part—and it made a difference.

How You Can Help

If this story motivates you to make a difference, please know the United Way offers many ways to get involved and would love your support. Here are just a few ideas:

  • Volunteer with United Way: Whether joining an in-person Action Day event or opting to champion an initiative from home, the United Way offers numerous year-round opportunities to support your local community!

  • Organize a Drive: Rally your workplace, neighborhood, or social group to collect supplies or funds that support local causes that interest you.

  • Make a Financial Contribution: Your donation to the United Way helps support a range of initiatives that address critical community needs. Every dollar matters!

  • Help Spread Awareness: Share information about volunteer opportunities you come across with your network. Many people want to help but simply don’t know how significant the need is or where to start.

To learn more about these impactful volunteer opportunities, visit the volunteer page of the Greater Twin Cities United Way’s website at https://www.gtcuw.org/volunteer/.


Navigating Complex Healthcare Real Estate Challenges

Healthcare real estate today isn’t just about finding space. It’s about making smart, strategic decisions in a world that keeps changing. Between rising costs, shifting clinical priorities, and new expectations from patients and providers, the healthcare real estate landscape has become more layered than ever. For many healthcare leaders, it can feel overwhelming.

That’s where Davis comes in. We help healthcare organizations see the full picture and make confident, well-informed real estate decisions. Whether they’re renewing a lease, expanding into a new market, or rethinking their entire footprint, our team brings clarity and strategy to what can often feel like a maze.

Why Healthcare Real Estate Can Be Complicated

Unlike other commercial real estate sectors, healthcare spaces have a lot of moving parts. Choosing a location isn’t just about convenience. It’s about making sure the site fits into a broader network of referral patterns, community needs, and service goals. A great site supports growth, while the wrong one can create significant challenges.

“The most successful healthcare real estate decisions consider referral patterns, patient demographics, and how the location fits into the provider’s long-term growth strategy,” says Principal Jill Rasmussen, CCIM, SIOR.

Leases are also more complex than they seem. There’s more to consider than just the rent. Items like maintenance fees, improvement budgets, and annual rent increases can add up quickly. If they’re overlooked, they can start cutting into your budget before the first patient walks through the door.

Then there’s the functionality of the space itself. Does the layout actually support the way your team works? Can the space adapt over time? Real estate isn’t just a location—it needs to support clinical care and workflow too.

For providers with multiple locations, the big picture becomes even more important. Balancing owned buildings, leased clinics, and joint ventures can get complicated quickly. A strong real estate strategy helps bring it all into alignment.

How Davis Helps Make It Simpler

At Davis, we work with healthcare users of all sizes to untangle the decisions that can stall growth or create unnecessary stress. If you’re looking for a new location, we go beyond the obvious to make sure it truly fits your goals. And if you’re managing a larger portfolio, we help you assess what’s working, where you may have gaps, and how to bring it all into better balance.

Our role is to quiet the noise. We support our clients in making decisions that are informed, sustainable, and aligned with long-term strategy. We think ahead and ask the kinds of questions that can help prevent surprises down the road.

What to Expect in a Real Estate Partner

When it comes to navigating healthcare real estate, the right partner matters. You want someone who understands your world: not just the real estate industry, but the way healthcare systems function, evolve, and grow.

You also want a team that communicates clearly and brings thoughtful solutions to the table. At Davis, we pair deep experience with curiosity and care. We know that healthcare real estate should support the important work our clients do. It should never get in the way.

What We’ve Learned Along the Way

We’ve spent decades in healthcare real estate, and we’ve learned a lot along the way. Getting everyone aligned early makes a huge difference later. The smallest lease details can turn into the biggest frustrations if they’re missed. Every market is different, and local insight always matters.

“The healthcare real estate landscape has evolved dramatically over the past three decades,” notes Rasmussen. “We’ve seen the shift from hospital-centric care to outpatient facilities, the rise of urgent care and specialty clinics, and the integration of telehealth considerations in space planning. What hasn’t changed is the importance of understanding each client’s unique clinical workflow and growth trajectory. Every healthcare organization has different needs, so cookie-cutter solutions often don’t perform well in this sector.”

Most importantly, we’ve learned that trust takes time. Projects run more smoothly when teams are aligned and communication is strong. That kind of trust can’t be rushed, but it can be built with consistency, presence, and follow-through.

It’s Not Just About the Space

Real estate decisions shape the future of care. They affect teams, budgets, and patient experience in ways that aren’t always obvious at first. The process may be complex, but it doesn’t have to be confusing. With the right guidance, it can feel clear and intentional.

That’s the kind of partnership we offer at Davis. We help you move forward with clarity and confidence every step of the way.

Client Profile: Bill Kenney, Chief Executive Officer, Dermatology Consultants

Client Profile: Bill Kenney, Chief Executive Officer, Dermatology Consultants

Davis has a 15 year plus relationship with Dermatology Consultants. When Bill Kenney joined the group as CEO in 2014, he was well familiar with Davis and particularly Michael Sharpe who he had worked with while both were at Allina. After receiving his MHA degree from the University of Minnesota, Bill worked at Presbyterian Health Services and Northwestern Faculty Foundation Services before joining Park Nicollet and then Allina.  At Allina, Bill served as the President of the Phillips Eye Institute and as Vice President of the United Heart and Vascular Clinic. Below is an excerpt of an exchange Davis had with Bill.

History of Dermatology Consultants

Dermatology Consultants was founded in 1949 by Dr. Harold Ravitz in Saint Paul, Minnesota. Since its inception, the practice has expanded to include suburban locations throughout the east metro area, with clinics now operating in Eagan, Vadnais Heights, Woodbury, and Saint Paul. With a team of 21 board-certified dermatologists and 2 physician assistants, the practice serves over 140,000 patient visits annually.

Dermatology Consultants provides comprehensive dermatologic care, including the diagnosis and treatment of a wide range of skin conditions, specialized skin cancer surgery (Mohs surgery), and cosmetic and aesthetic services at all four locations. Supported by a dedicated staff of 160 employees, the organization remains committed to its mission: “To provide exceptional skin care in a safe and welcoming environment.”

What Sets Dermatology Consultants Apart

Dermatology Consultants distinguishes itself through consistently high levels of patient satisfaction, timely communication of pathology results, and a strong culture of engagement among both physicians and staff. This is demonstrated by long-standing employee tenure and a history of physician retention. Its facilities have been thoughtfully updated to optimize patient flow and enhance the overall care experience.

Challenges and Opportunities

As with many independent medical practices, they face ongoing challenges related to rising operational costs—particularly staffing and medical supplies—without corresponding increases in insurance reimbursement rates. To address this, Dermatology Consultants has collaborated with other independent dermatology groups to negotiate improved payer contracts and leverage collective purchasing power. These strategic partnerships have helped strengthen their financial position and preserve their independence.

Accomplishments

Over the past 11 years, Bill has worked closely with his physicians and leadership team to support and grow the practice. Notably, they completed new construction offices in both Saint Paul and Woodbury and refreshed the Vadnais Heights location to better serve its patient base. Bill also played a key role in physician recruitment and has been proud to lead a seasoned and highly competent leadership team that continues to drive the organization forward.

Retirement Horizon

Bill’s healthcare career spans five decades, during which he had the privilege of leading organizations committed to delivering high-quality patient care. He and his wife Maggie have thoughtfully prepared for their next chapter and look forward to an active retirement that includes travel, volunteerism, continued teaching and working on their pickleball game (timing not as of yet firmly defined).

Having served as an instructor in the University of Minnesota’s Health Services Management undergraduate program for over a decade, Bill recently developed a course in group practice management, which he will teach alongside the existing healthcare administration and management class. Additionally, he plans to renovate his family cabin in Northern Wisconsin, and will remain active on two community boards.

Valued Traits in a Service Provider or Partner

The qualities Bill values most in a business partnership are honesty, trust, integrity, and clear communication. These attributes have been consistently demonstrated throughout his relationship with Davis, particularly in his work with Michael Sharpe over the past 11 years.

How Davis Has Supported Our Business Goals

“Davis has been an outstanding partner in helping us evaluate market opportunities and make informed decisions regarding facility planning and lease negotiations”, said Bill during this interview. “Michael Sharpe possesses not only a deep understanding of the regional market but also a keen awareness of how our physician partners think and make decisions. His expertise has been instrumental in supporting our long-term success.”

The Economics of Healthcare Leasing: Making Smart Real Estate Decisions in 2025

In 2025, healthcare organizations are navigating an increasingly complex real estate landscape, marked by rising costs, changing patient behaviors, and an ongoing push toward operational efficiency. For providers, smart leasing decisions aren’t just about square footage—they’re about sustainability, growth, and positioning care delivery for the future.

At Davis, we work at the intersection of healthcare strategy and real estate intelligence. We help providers, systems, and investors understand the economic drivers shaping leasing decisions today and how to make choices that support clinical outcomes and financial health alike.

Understanding the Shifting Landscape

There are several macro-trends that are influencing healthcare leasing in 2025:

  • Providers are increasingly opting for long-term leases to minimize capital outlay—freeing up funds for operational investments and minimizing short-term financial risk.
  • Rising construction and operational costs are pushing organizations to reevaluate space utilization and build-versus-lease scenarios.
  • Outpatient migration continues to drive demand for medical outpatient buildings (MOBs) in suburban and community-based locations.
  • Value-based care models are influencing the types of spaces providers need—favoring efficiency, accessibility, and flexibility.
  • Competition for prime locations near hospitals, transit, and population centers is increasing lease rate pressure.
  • Evolving patient preferences call for more convenient, comfortable environments that reflect a consumer-first mindset.

With these shifts in play, making leasing decisions based on outdated benchmarks can lead to underperforming locations or costly commitments that don’t serve your strategic direction.

Key Considerations in Today’s Lease Market

To make informed, forward-thinking leasing decisions in 2025, we advise healthcare organizations to consider:

  • Understand current market benchmarks—including build-out costs, gross rental rates, and common incentives—to avoid underestimating long-term cost exposure.
  • Total occupancy cost (not just base rent): factoring in CAM, taxes, and operating expenses.
  • Flexibility clauses that allow for growth, right-sizing, or changing care models over the lease term.
  • Space efficiency and how effectively the layout supports provider workflows and patient throughput.
  • Location dynamics, including access to complementary services, workforce hubs, and referral sources.
  • Long-term value alignment, including how the lease structure supports your capital strategy and expansion goals.

Whether leasing new space or renewing an existing agreement, every decision is an opportunity to support care delivery and reduce long-term risk.

How Davis Helps Clients Make Smarter Leasing Decisions

At Davis, we guide clients through a leasing process that’s rooted in market intelligence, clinical context, and operational foresight. Our approach includes:

  • Comprehensive lease analysis, helping clients evaluate short- and long-term cost implications.
  • Strategic site selection, informed by data on population growth, referral networks, and competition.
  • Customized negotiations, securing terms that align with clinical needs and long-range growth plans.
  • Real estate portfolio alignment, ensuring every lease fits within a broader care delivery and capital strategy.
  • Tenant representation, with a focus on protecting provider interests at every stage of the transaction.

From large health systems to independent specialty groups, we act as an extension of your strategic team, offering clarity, confidence, and negotiation leverage in a competitive market.

Leasing Longevity with Davis

The economics of healthcare leasing have never been more dynamic. In 2025, the most thoughtful decisions are the ones that balance today’s constraints with tomorrow’s possibilities.

We believe that healthcare real estate should do more than offer care; it should help deliver it. That’s why our team at Davis is committed to helping our partners make leasing decisions that work for today and endure for what’s next.

Davis Management Team Coordinates Impressive E-Waste Collection on Earth Day 

This past Earth Day marked a significant stride in environmental stewardship, as tenants across 22 Class A medical buildings partnered to collect over 9,000 pounds of electronic waste (e-waste). The overwhelming success of this initiative highlights a growing commitment within the medical community to sustainable practices and responsible disposal of electronic devices. 

Collection bins quickly filled with everything from outdated essential office equipment to microwaves, reflecting the variety of devices we accumulate over time.

“We are incredibly proud of the widespread participation and dedication shown by our medical tenants,” stated Peggy Schatz, Senior Vice President – Property Management. “Exceeding 9,000 pounds of e-waste collected is a powerful test.”

Minnesota’s Stance on E-Waste: Protecting Our Local Environment

Minnesota has been proactive in addressing the e-waste challenge, recognizing its direct impact on our local ecosystems and public health. The state prohibits the disposal of certain electronic products, like televisions and computer monitors, with household trash, a ban that went into effect in 2006. Further, the Minnesota Electronics Recycling Act (MERA), enacted in 2007, places responsibility on manufacturers of video display devices (VDDs) to fund and support the collection and recycling of covered electronic devices (CEDs) from households.

Current legislative proposals, such as Senator Rob Kupec’s SF 1690, aim to strengthen these efforts by creating a free, statewide e-waste disposal system, shifting the financial burden from consumers and local governments to producers. This is crucial given that Minnesota generates an estimated 266 million pounds of e-waste annually, with only about 24% currently captured for recycling. Unrecycled e-waste not only leaches heavy metals like lead and mercury into groundwater, contaminating our drinking water and soil, but also represents a loss of valuable materials, estimated to be worth up to $3.2 billion in critical minerals and metals. Batteries, when improperly disposed of, have also been a significant cause of fires in landfills and recycling facilities.

The Global Ripple Effect: Where Our E-Waste Ends Up

While responsible recycling in Minnesota helps mitigate local risks, the global e-waste problem extends far beyond our borders. The majority of e-waste generated worldwide, a staggering 62 million tons in 2022 (enough to fill 1.5 million transport trucks), is not formally collected or recycled. A significant portion of this unmanaged e-waste often ends up in low- and middle-income countries, particularly in informal recycling sectors.

In these regions, desperate economic circumstances lead to hazardous practices like:

Open-air burning: To recover valuable metals like copper, workers often burn plastic coatings off wires and circuit boards. This releases a cocktail of highly toxic chemicals, including dioxins, furans, lead, mercury, and cadmium, into the air. These pollutants travel far, contaminating air, soil, and water, and exposing entire communities to severe health risks.

Acid leaching and crude dismantling: Workers, often without protective gear, use strong acids to extract precious metals, discharging contaminated wastewater directly into rivers and groundwater. Manual dismantling exposes them to direct contact with heavy metals and other harmful substances, leading to skin rashes, lung damage, and neurological issues.

The consequences for these vulnerable communities are devastating. Children, often involved in these dangerous activities, are particularly susceptible to developmental delays, neurological damage, and respiratory illnesses. Contaminated soil and water sources lead to long-term health problems, impacting everything from fertility to increased cancer risks. These informal practices not only pollute local environments but also contribute to global climate change through the release of potent greenhouse gases and persistent organic pollutants.

By participating in responsible e-waste collection programs like the one hosted by Davis to the benefit of its medical tenants, we contribute to a vital global solution. It ensures that valuable materials are recovered, hazardous substances are managed safely, and the burden of our discarded electronics does not fall disproportionately on communities already facing environmental and social challenges.  The success of this Earth Day e-waste drive serves as a powerful reminder of how collective action, driven by local responsibility and global awareness, can make a substantial positive impact.

Davis Celebrates Opening of new Midwest ENT Clinic in Lakeville

Davis is thrilled to announce that Midwest Ear, Nose & Throat Specialists (Midwest ENT) is now open and serving patients at their brand-new 14,000 SF clinic in Lakeville, Minnesota. Located at 11020 West 161st Street, this cutting-edge medical outpatient building represents another successful healthcare development in our growing portfolio and brings world-class ENT care to the south metro community.

A Vision Realized in Record Time

What makes this project particularly remarkable was its speed of execution. From breaking ground in July 2024 to opening its doors to patients in April 2025, our team delivered this gorgeous, state-of-the-art Class A medical facility in just 10 months—a testament to the collaborative effort between Davis, our strategic partners and Midwest ENT.

The design Davis orchestrated for this clinic optimizes patient flow while creating a welcoming, comfortable and eco-friendly care environment. This single-story facility features high ceilings and numerous floor-to-ceiling windows creating an open and airy atmosphere throughout its reception area and waiting spaces. A warm and modern color pallete was chosen for its calming aesthetic, which in conjunction with the natural lighting further helps keep patients at ease. To ensure the building works symbiotically with its environment and demonstrate our ongoing commitment to sustainable healthcare development, eco-friendly design choices can be found throughout the space. In fact, the building’s mechanical, electrical, and plumbing systems exceed Minnesota Energy Code requirements by 15%.

“This project exemplifies our commitment to creating high-quality healthcare spaces that serve both medical providers and the communities they care for,” says Mark Davis, CEO. “Working alongside Midwest ENT, we’ve delivered a beautiful new building that enhances healthcare accessibility in the rapidly growing Lakeville market.”

Strategic Location Meets Community Needs

The new building’s location along the Highway 35 corridor provides ideal accessibility for patients throughout the southern Twin Cities metro area. Surrounded by residential neighborhoods, retail centers, and restaurants, the site offers both convenience and connectivity—critical factors in modern healthcare delivery.

This development helps to solidify Lakeville’s emergence as a healthcare hub, offering four specialized services:

  • Ear, Nose & Throat care
  • Allergy & Asthma care
  • Facial Plastics
  • Medical Spa services

By offering a full array of comprehensive specialty services in one convenient location, patients are able to get the care they need in a highly efficient manner, reducing travel time, improving care coordination and ensuring positive outcomes.

Looking Forward

As Midwest ENT begins serving patients in their new Lakeville home, we’re proud to have played a role in expanding access to specialized healthcare in the south metro. This project exemplifies our mission: creating exceptional healthcare environments that enhance both provider capabilities and patient experiences.

For more information about Davis’s healthcare real estate services or to discuss your organization’s needs, please contact our team.