Healthcare Real Estate Insights
The healthcare sector is growing rapidly, thanks to the aging baby boomer population and changes in health legislation. This growth is driving demand for healthcare real estate. This type of property offers investors a well-rounded portfolio, with opportunities in hospital and medical office buildings, senior housing, life science space, and other niche properties.
To be successful, developers and investors need to stay ahead of market trends. That requires data-driven healthcare real estate insights, allowing them to pinpoint new strategic locations and partnerships. The first step is accurately zeroing in on the market or sub-market to be analyzed. This can be done at the zip code or address level, based on patient drive time, or by trade area.
From there, companies need to identify the best location opportunity(s). They must know what services are in high demand in that market, and what the underlying market dynamics are that will shape those demands. Data about patient demographics, payer mix, and other factors can help answer those questions.
In some cases, healthcare groups will purchase existing retail space to turn it into a healthcare facility. This type of “medtail” space is occupied by doctors, dentists, and other medical tenants, and offers the benefits of foot traffic in busy areas. For example, dermatologists and alternative medicine practices often choose to be located in shopping malls. In other cases, hospitals will buy and sell off their on-campus real estate to free up capital to invest in other operations or to monetize the assets. healthcare real estate insights