After remaining relatively stable during the latest recession, the health care real estate market appears on the cusp of explosive growth. Here are eight signs of the favorable opportunities existing in health care real estate:
1- Medical office vacancy rates nationwide are at their lowest level, 10.9 percent, since the 2008 recession. Furthermore, much of the vacancies exist in older, less adaptable buildings, meaning they aren’t an option for many practices seeking space. The impact of the recession and the uncertainty caused by the lengthy debate on the Affordable Care Act caused health organizations to shutter new construction. At the same time, demand for health care services increased. Now that the recession is in the rear-view mirror and the ACA’s impact is clearer, the industry is again looking to expand.
2- The need to expand health care services has never been greater. Millions of Americans now have greater access to health care because of the ACA; imagine, for instance, how the auto industry would benefit if a new law created 30 million newly licensed drivers. Additionally, the elderly population aged 65 and over, the most predominant users of health care services, is projected to increase by 79.2 percent through 2030.