(McKinney, Tex., and Indianapolis, Ind. ‒ Oct. 1, 2015) Residents of McKinney and Dallas-Fort Worth will soon have more healthcare services and physicians to choose from, thanks to Baylor Scott & White Health, the largest not-for profit healthcare system in Texas, and Duke Realty, an Indianapolis-based commercial real estate developer that specializes in medical office properties.

The parties just began developing the 75,000-square-foot, three-story Baylor McKinney II medical office building (MOB) at 5252 W. University Drive in McKinney, which is about 33 miles north of Dallas. The MOB will be located on the Baylor Medical Center at McKinney campus and adjacent to Baylor McKinney I, a 114,924-square-foot, four-story MOB which Duke Realty developed and opened in 2012.

Officials at Baylor Scott & White said the new facility is needed to meet the growing demand for healthcare services in McKinney and Dallas-Fort Worth.

'McKinney, Dallas and Fort Worth are some of the fastest-growing cities in the country, and residents' healthcare needs are increasing right along with that growth,' says Joel Allison, CEO of Baylor Scott & White Health. 'There aren't enough physicians to treat local residents, plus residents are underserved in a number of medical specialty areas, especially surgical specialties. We expect that the new facility will help us meet some of that growing demand.'

Wes Huff, Director of Real Estate for Baylor Scott & White Health, said the new MOB also is needed because of the tremendous growth on the Baylor Medical Center at McKinney campus.

'Baylor Scott & White is actively recruiting new physicians, but the Baylor McKinney I MOB is now almost at capacity with no room to house new physicians and add more healthcare services,' notes Mr. Huff. 'The new medical building will allow us to move hospital administrative space out of Baylor McKinney I, freeing up more physician and clinical space.'

Keith Konkoli, Duke Realty Executive Vice President, Healthcare, said the project also includes additional improvements and renovation on the 0.69-acre campus, including parking and roadwork.

'Duke Realty and Baylor have worked together since 2008, developing some of the highest quality healthcare facilities in the country,' says Mr. Konkoli. 'We're currently investing in improving the overall Baylor Medical Center at McKinney campus masterplan so that Baylor Scott & White can continue to provide exceptional patient care now and into the future.'

Not including Baylor McKinney MOB II, Baylor currently occupies space in 10 Duke Realty-owned buildings, with the potential for additional developments.

Baylor McKinney MOB II is expected to be complete in September 2016. Affiliates of Baylor Scott & White Health will lease a significant portion of the building. Physician prospects that execute leases prior to substantial completion of the building will have the opportunity to invest in a joint venture for Baylor McKinney MOB II.

The general contractor for the project is the Dallas office of Medco Construction, and the architect is the Dallas office of HDR.

About Baylor Scott & White Health

Baylor Scott & White Health, the organization formed from the 2013 merger between Baylor Health Care System and Scott & White Healthcare, is today the largest not-for-profit healthcare system in the state of Texas. With total assets of $9 billion* and serving a population larger than the state of Virginia, Baylor Scott & White Health has the vision and resources to provide its patients continued quality care while creating a model system for a dramatically changing healthcare environment. The organization now includes 49 hospitals, more than 800 access points, more than 5,800 active physicians, 35,000 employees and the Scott & White Health Plan. For additional information, please visit www.baylorscottandwhite.com.

* based on audited fiscal year 2013 financial statements

About Duke Realty

With 25 years in the industry, Duke Realty's healthcare team offers proven experience in providing hospitals and physician groups comprehensive planning, development, ownership and facility management services. Projects have ranged from small medical office buildings to large ambulatory care centers with diagnostics, oncology and surgery services. To find out more, please visit www.dukerealty.com/healthcare.

Duke Realty Corporation owns, maintains an interest in or has under development 142 million rentable square feet of bulk distribution and office assets, including medical office, in 22 major U.S. metropolitan areas. Its medical office portfolio totals 5.9 million square feet, with properties in 15 markets. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty Corporation is available at www.dukerealty.com. Duke Realty also can be followed on Twitter, LinkedIn, Facebook and YouTube.

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