Growing Opportunity in Medical Office Space
By 2030, the number of people over the age of 65 in the United States is expected to grow by 50 percent, according to the Association of American Medical Colleges. This aging population will create a higher demand for medical facilities that will last for decades. Smart investors see this as an opportunity for a high return on a medical office space investment.
What Makes Medical Office Space a Good Investment?
In addition to the growing demand, medical office space has some unique factors that make it appealing to investors.
- Medical office space has one of the lowest vacancy rates of all types of commercial real estate.
- While the number of people in need of medical care is growing, construction of new medical office space is not. It’s a classic case of supply not keeping pace with demand.
- Tenants in medical office space tend to stay put once they’re settled. A medical practice becomes a fixture of the community, and it’s often difficult to relocate without losing patients. With the supply of available space falling far short of the demand, medical practices which might consider moving don’t find many appealing options on the market.
What to Look for in a Medical Office Space Investment
It’s a cliche, but it’s the truth. Location is everything, and this is definitely true for medical office spaces. The most attractive properties are going to be those near a hospital or another type of large medical complex. The value of a building in such an area will rise faster in a shorter period of time. This is a simple matter of convenience.
Physicians who practice in a large complex like to refer patients to specialists close by. Ample parking is another trait to consider before you buy a medical office property. Medical providers need space for employees and patients, but extra parking for disabled persons and an area near the door to drop off patients are highly desirable. This can be hard to come by in an urban area.
Let Royal Commercial Real Estate Help You Find Your Next Investment
In the Phoenix Valley, Royal Commercial Real Estate is your professional partner in your search for the ideal medical office space investment. Our agents take the time to understand your goals, finances, and risk tolerance. Then we search the market thoroughly and carefully for the best matches. We don’t waste your time seeing properties that don’t match your interests. Contact Royal today and let’s get started.