The health care industry is booming, in part due to our aging population. This trend means that the need for various facilities is growing: medical office space, imaging centers (for example, MRI), and outpatient surgery centers are just a few. Real estate investors would be wise to consider commercial real estate medical office space investment opportunities. You can read what Robyn A. Friedman has to say about medical office space in this article:
Why institutional investors should consider adding medical office to their portfolios.
Reasons for Optimism
Our country’s 65-and-older demographic is expected to increase by close to 2 million this year and by over 9 million over the next five years; considering these numbers, the demand for healthcare services will only increase accordingly. Furthermore, employment in the healthcare sector has grown 47 percent since the year 2000, and it’s anticipated it will grow even further. As the article discusses, the opportunity for investing in medical office space is strong for these reasons as well:
Lease terms for MOBs [medical office buildings] are also typically attractive to investors, as tenants tend to be financially stable customers like physicians or healthcare systems with investment-grade credit. MOB tenants also tend to invest significant amounts of capital in equipment and fixtures, and as a result they are unlikely to relocate merely because a building down the street will save them a few dollars per square foot.
If you’re interested in exploring opportunities in commercial real estate medical office space, David Babani is here to help you. Put his years of experience in the care industry to work for you. You can reach him at 480-306-4399 or firstname.lastname@example.org.