For over 40 years, members of Pacific Medical Buildings' ("PMB") senior management have concentrated exclusively on the design, construction, and operation of healthcare facilities. PMB Real Estate Services ("RES") was formed by PMB as a wholly-owned subsidiary in order to ensure enhanced service levels to specialized tenants.
The company has grown to become one of the leading providers of real estate management services in the Medical Office Building ("MOB") segment of commercial real estate. RES currently manages the complete operations of 2.8 million square feet of MOB space generating annual revenues in excess of $100 million. We have 13 offices throughout the United States including our headquarters based in San Diego, CA. The company successfully works with a broad spectrum of clients including individual partnerships, hospital systems, and institutional organizations such as Ventas (NYSE: VTR) and La Salle Investment Management.
RES maintains a strong focus on operational efficiency, effective leasing, and solid fiscal results. Traditional third party property management firms do not typically grasp the intricacies of managing medical office buildings. Tenants and suites in this segment of the market are complex. MOBs typically cost 40-50% more to operate than general office buildings (source: 2010 Penner Associates Expense Guide). With increasingly sophisticated services moving from acute care hospitals to MOBs, there is a need for specialized property management capabilities. With service to healthcare providers as the focus, all key processes throughout the organization are analyzed, optimized, and documented in standard operating procedures. In addition, the organization maintains an internal control structure in compliance with the requirements of the Sarbanes-Oxley Act of 2002 (SOX).
RES provides a differentiated service level which is driven by the strategic intent of its shareholders, PMB and Ventas. Traditional third-party management firms have a primary focus on maximizing the profitability of their company. While we believe that the revenue growth and profitability of RES are important, our primary focus is on maximizing the profits of property owners while providing differentiated service to our tenants. Studies have shown that healthcare tenants require significantly higher levels of attention than typical commercial tenants. To ensure that we provide what is needed, RES works diligently to train its employees on the nuances of healthcare clients and has developed a proprietary system to ensure that every tenant is visited at least once per week. Providing more personal attention has resulted in high tenant retention which currently averages 86%.
RES has been actively involved in the development, leasing and management of medical office buildings since 1971. We have worked with more than 97 hospitals, managed and leased more than 3 million square feet of healthcare real estate, and negotiated more than 2,500 physician leases. PMB Real Estate Services offers our clients a wide array of specialized real estate solutions for the healthcare industry, customized to meet their requirements with a track record of assuring and enhancing client and tenant satisfaction.