The United States is undergoing a dramatic demographic shift as the Baby Boomer generation enters their golden years. By 2030, all Baby Boomers will be over age 65, expanding the size of the older population so that 1 in every 5 Americans will be of retirement age, according to the U.S. Census Bureau. This “graying of America” is poised to have far-reaching impacts across society, not least of which is an increased demand for healthcare services and facilities. As a result, the need for healthcare real estate – including medical office buildings, hospitals, assisted living facilities, and skil ..read more

The healthcare industry has been undergoing major consolidation over the past decade, with large health systems acquiring physician practices, ambulatory surgery centers, and other outpatient facilities at a rapid pace. This consolidation presents both challenges and opportunities for healthcare leaders when determining where to locate new medical office space.  Key Factors to Consider When deciding where to open a new medical office facility, there are several key factors to take into account in the modern environment of consolidation, including: Accessibility to patients and proximity ..read more

Marketing medical real estate effectively requires an understanding of the unique needs and motivations of healthcare providers. As the healthcare industry continues to grow and consolidate, competition for prime property is heating up.  Whether you’re selling a medical office building, surgery center, or hospital, using the right marketing strategies could mean the difference between a long slog and a bidding war.  Here are some of the top tips for marketing and selling your medical real estate investment: Focus Your Marketing Understanding who the likely buyers of your property wil ..read more

The medical office development landscape is shifting as new construction starts to slow down while renovations and repurposing existing retail and office spaces pick up steam. High construction costs and limited availability of buildable land have made new ground-up projects less feasible, leading developers to find creative solutions to expand healthcare access. New Construction Slowing Due to High Costs New medical office construction reached a fever pitch during the 2010s as demand grew rapidly. However, rising costs for materials, labor, and land have put a damper on new projects over the ..read more

It’s that time again – your medical office lease is coming up for renewal. As a healthcare provider, you know that your office space is critical to your practice. The location, layout, and condition of your office impact your patients, staff, and bottom line.  When renewal time approaches, you have leverage to potentially improve your current lease terms. Do not automatically accept the landlord’s proposed renewal terms without first trying to negotiate a better deal. Here are some tips when negotiating your medical office lease renewal: Start the Process Early Ideally, you should begin d ..read more

The healthcare real estate sector has seen growing interest from investors in recent years, driven by favorable demographic trends like the aging population as well as the continued shift towards outpatient and ambulatory care settings. However, effectively navigating this complex sector requires an in-depth understanding of key healthcare market trends influencing facility needs and targeted strategies to enhance value in healthcare real estate investments. This comprehensive article provides critical insights for investors to maximize returns in this attractive but complex real estate niche ..read more

As a business owner in the medical field, you want to fully understand your financial and legal commitments, especially when it comes to leasing medical facilities. Conducting a commercial lease audit is one of the best ways to gain this understanding. It provides total clarity into your contractual relationship with your landlord, ensuring that your medical facility’s needs are met. Financial audit team is checking the numerical graph to present. What exactly is a commercial lease audit? It is a comprehensive examination and analysis of your current lease agreement. Every aspect of the lease ..read more

When looking to purchase or lease commercial real estate for healthcare services, you may encounter an AIA or “As Is Agreement.” AIAs are commonly used in medical real estate deals to release the seller from liability for any defects or issues with the property being sold or leased. However, there are some important reasons why accepting a medical AIA as is comes with risks, and could necessitate negotiations or even walking away. Ambiguous Terms About Building Conditions A big red flag with medical real estate AIAs is vague language about the property’s specifications, systems, and structures ..read more

Purchasing or leasing medical office space is a major decision for any medical practice. There are pros and cons to both options that medical professionals must weigh carefully based on their unique needs and situation.  Here are some of the top reasons to consider leasing versus buying a medical office building in today’s market. Why Lease Your Medical Office? Lower Upfront Costs Leasing requires less capital upfront compared to purchasing a building. Often, only a security deposit is required to secure leased space versus a 20-30% down payment on a mortgage loan. This frees up capita ..read more

With inflation in the United States reaching a 40-year high in 2022, its impacts are being felt across sectors. For real estate investors, rapidly rising property prices and borrowing costs present new variables to weigh. Healthcare real estate specifically faces unique challenges as inflation drives up development expenses and squeezes provider margins. However, demographic trends continue to fuel demand for medical facilities and services. By taking a strategic approach, opportunities remain for healthcare real estate investment in the inflationary climate. Impact of Inflation on Healthcare ..read more