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Tom Fox

Those who don’t live in Northeast Ohio might not know that it boasts a thriving medical district. The Cleveland/Akron region is home to the well-regarded Cleveland Clinic, Akron General Hospital and the Cleveland Medical Mart & Convention Center. It also boasts Sanford-Brown College, a top medical university. Tom Fox, president of Akron-based NAI Cummins, along with the company’s vice president, Bob Raskow, talked with Midwest Real Estate News about the region’s booming healthcare business and its impact on commercial real estate.

Midwest Real Estate News: We always hear a lot of negative press about Cleveland and Northeast Ohio. Is this justified, or do you see signs of hope in your area?
Tom Fox: I believe that we are seeing some signs of hope. There aren’t a lot of signs out there, but there are some. We recently completed a transaction with a medical company. The company has asked us to keep the details under the lid right now, but it will be a positive announcement for the area.
Bob Raskow: We do have a strong healthcare industry here in Northeast Ohio. We have hospitals here that are very active. They compete with each other, and they are always looking to expand. It’s definitely a positive for this area.
Fox: On the supply side, there has been consolidation among several hospitals in the area. They are working on consolidating their medical services into fewer spaces. That should provide some efficiencies for the hospitals. Putting distribution facilities under one roof as opposed to several should make the hospitals here more efficient.

Bob Raskow

MWREN: What makes this area so attractive to healthcare providers?
Fox: I would guess that some of it has to do with the hospitals that are in place now and have been in place. The Cleveland Clinic is renowned around the world for the work it has done. The facilities in the Akron area have very good reputations. Other companies see this and are attracted to this area. I think that the quality of facilities that we already have here mean that more medical providers are drawn to the region. The Medical Mart here has also created quite a buzz. The Medical Mart has certainly been a good thing for Northeastern Ohio.

MWREN: Are people outside the area surprised at the thriving medical industry in the region?
Raskow: They might be, but they shouldn’t be. Our hospitals always rank high on a national level. They’ve earned strong reputations.
Fox: When I travel in the Naples, Fla., area, I often run across a sign that advertises the Cleveland Clinic. I admit that I am surprised to see that.

MWREN: So the healthcare market remains strong in your region, even with the down economy?
Fox: I don’t want to say it is recession-proof. This recession has proven that there is no such thing as a recession-proof sector. But with an aging population, I think that the healthcare industry has a great opportunity in the future. I think the hospitals and drug companies have a bright future. Turn on the TV today and see how many drug commercials are on. Everyone is gearing up for the aging population of Baby Boomers. There are Walmarts and CVS stores on many of our busiest corners. All these medical businesses are positioning themselves for this time period.
Raskow: The new healthcare legislation has made a difference, too. A lot of medical providers were waiting on the sidelines to see how that played out. As soon as the legislation passed, they all started making movements to get bigger market shares. Time will show if the healthcare bill is a good thing or a bad thing. The bill is still so new. But its passage certainly has stirred up interest.

Tags | Akron, Cleveland, healthcare, NAI Cummins, Ohio