Medical Office Space in Morgan Hill.
Morgan Hill has no hospital; medical offices cluster on De Paul Drive, Juan Hernandez Drive, Butterfield Boulevard and Monterey Road.
Morgan Hill Healthcare Real Estate Market
Morgan Hill has 47,074 residents (California Department of Finance, 2026) and no hospital of its own. The closest hospitals are in neighboring cities: St. Louise Regional Hospital at 9400 No Name Uno in Gilroy, part of the county's Santa Clara Valley Healthcare system, and Kaiser Permanente's San Jose Medical Center on Hospital Parkway in south San Jose. The building at 18550 De Paul Drive, which housed Saint Louise Regional Hospital until 1999, reopened in March 2024 as the county's Valley Health Center Morgan Hill, with primary care, a walk-in urgent care center, lab, radiology, pharmacy, general surgery and gastroenterology. On March 3, 2025, Sutter Health's Palo Alto Medical Foundation opened a 9,950-square-foot primary care center at 16130 Juan Hernandez Drive, where El Camino Health also runs a primary and specialty care clinic. On March 4, 2026, the city approved the Rosewood/Morgan Hill Medical Campus at Juan Hernandez Drive and Barrett Avenue: three new medical office buildings and a 965-space parking garage, a net gain of 134,600 square feet. Independent practices also lease space in multi-tenant buildings at 18181 Butterfield Boulevard and along Monterey Road. For practices, the main choice is between the county campus on De Paul Drive and the growing health-system cluster on Juan Hernandez Drive.
Profile updated
Where Medical Offices Cluster in Morgan Hill
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De Paul Drive
County-run Valley Health Center Morgan Hill (18550 De Paul Dr), the former Saint Louise hospital building, with urgent care, primary care, lab, radiology, pharmacy and specialty clinics.
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Juan Hernandez Drive & Barrett Avenue
Sutter Health/PAMF primary care and El Camino Health primary and specialty care at 16130 Juan Hernandez Dr; the approved Rosewood/Morgan Hill Medical Campus (17575 Peak Ave) adds three medical office buildings.
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Butterfield Boulevard
Multi-tenant building at 18181 Butterfield Blvd with urology, family medicine, dental, optometry and mental health practices.
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Monterey Road
Smaller medical and dental offices along Monterey Road, including multi-tenant buildings at 16275 and 16360 Monterey Rd.
Current Listings in Morgan Hill
As of October 8, 2026
No active listings in Morgan Hill at this time.
Browse all propertiesMorgan Hill Case Studies
No case studies for Morgan Hill currently available.
Browse all projectsFrequently Asked Questions
View All FAQs? Does Morgan Hill have a hospital?
No. The closest hospitals are St. Louise Regional Hospital in Gilroy, a county-owned hospital at 9400 No Name Uno, and Kaiser Permanente's San Jose Medical Center on Hospital Parkway. Morgan Hill's former hospital building at 18550 De Paul Drive, which was Saint Louise Regional Hospital until 1999, now houses the county's Valley Health Center Morgan Hill. It opened in March 2024 with primary care, a walk-in urgent care center open evenings and weekends, lab, radiology and pharmacy, and the county has said it plans to add more specialties.
? What is the Rosewood/Morgan Hill Medical Campus?
It is a planned medical office campus on a 9.61-acre site at 17575 Peak Avenue, at Juan Hernandez Drive and Barrett Avenue. The City of Morgan Hill approved it on March 4, 2026, after a subsequent environmental impact report. The plan calls for three new medical office buildings, a six-story, 965-space parking structure and surface parking. Two existing medical office buildings totaling 15,900 square feet would be demolished, for a net gain of 134,600 square feet. The applicant is Brookfield Properties. The state CEQA filing does not give a construction schedule.
? Which health systems have clinics in Morgan Hill?
Santa Clara Valley Healthcare, the county system, runs Valley Health Center Morgan Hill at 18550 De Paul Drive. Sutter Health's Palo Alto Medical Foundation opened a 9,950-square-foot primary care center at 16130 Juan Hernandez Drive on March 3, 2025, with family medicine, internal medicine, pediatrics, lab and MRI, CT and ultrasound imaging. El Camino Health runs a primary and specialty care clinic in Suite 100 of the same building, with family medicine, internal medicine, cardiology, general surgery and vascular surgery.
? What factors should medical practices consider when choosing a location?
Key site selection factors include: proximity to referral sources and hospitals; patient demographics and population density; visibility and accessibility (parking ratios, ADA compliance); competitor proximity; zoning and permitted uses; co-tenancy with complementary healthcare providers; and ease of access for patients including public transit options in urban markets.
? What is a second-generation medical space?
Second-generation (2nd gen) medical space is a suite previously occupied by a medical tenant that retains clinical infrastructure like plumbing, electrical, and possibly exam room layouts. Leasing 2nd gen space can significantly reduce build-out costs and timelines compared to shell condition, though modifications may still be needed to suit your specific practice requirements.
? What factors influence medical office rents in California?
Medical office rents vary with location (proximity to hospitals and medical corridors), building quality and age, the condition of the space (second-generation medical space with existing exam rooms and plumbing typically leases for more than shell space), lease structure (NNN versus full-service gross), the tenant improvement allowance offered, parking availability, and local supply. Rents also tend to be higher in supply-constrained markets such as Palo Alto and San Francisco than in suburban markets.
Sources
- California Department of Finance, E-1 City Population Estimates (Jan. 1, 2026)
- Morgan Hill Times: county opens expanded Valley Health Center Morgan Hill (2024)
- Sutter Health Vitals: Sutter brings primary care center to Morgan Hill (2025)
- El Camino Health: Primary and Specialty Care Morgan Hill
- CEQAnet: Rosewood/Morgan Hill Medical Campus, Notice of Determination (March 2026)
- HCAI: St. Louise Regional Hospital facility profile
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