Location spillovers are a common theme in real estate and urban economics research, but this is the first test on the relationship between hospital service quality and the demand for proximate medical office space. We hypothesize that hospitals with reputations for high quality service represent an opportunity for physicians, and other service providers, to benefit from reputation spillovers. Further, the reputation benefit is capitalized into the practices’ willingness to pay for proximate office locations, thereby driving up the rental rates for nearby space. We find that distance from, and overall quality ranking of the hospital, both independent and in concert, are significantly linked to the base rents. The degradation in rent with distance is significantly greater when the hospital is ranked high in overall service quality, supporting the notion that a rent premium is linked to the high-quality hospital rather than simply an artifact of the neighborhood.

区位溢出是房地产和城市经济学研究的一个共同主题，但这是对医院服务质量与就近医疗办公空间需求之间关系的首次检验。我们假设以高质量服务而闻名的医院为医生和其他服务提供者提供了从声誉溢出中受益的机会。此外，声誉收益被资本化为实践愿意为附近的办公地点支付费用，从而推高了附近空间的租金。我们发现医院的距离和整体质量排名，无论是独立的还是一致的，都与基本租金显着相关。当医院的整体服务质量排名靠前时，租金随距离的下降明显更大，