SAN ANTONIO-Though things are slow right now in the healthcare real estate sector (as they are in other sectors), don't expect them to continue that way. According to Scott Herbold, CBRE's Healthcare Capital Markets Group vice president, during the rest of the year, the sector will see a lot more activity as different methods of healthcare delivery are introduced, interest rates and valuations climb and more medical office building development takes place.

Herbold tells GlobeSt.com that, while local and smaller regional health systems will be acquisition targets for their larger, well-funded counterparts, monetization of those systems' non-core assets will accelerate. "The perceived stigma associated with selling assets will be trumped by the desire for strategic capital partners," he notes.

His other predictions are as follows:

• On the healthcare delivery front, the uncertain reimbursement environment will lead to more commitment of capital by growing practice groups.
• Continued convenience demands from patients will continue driving conversion of existing retail into medical centers, and will also lead to development of new retail healthcare real estate.
• In discussing capital markets, Herbold indicates that capital flow and credit tenancy will drive asset valuations – and to expect more interest rate and bond market volatility.
• Look for an uptick in healthcare real estate development, especially of post-acute facilities including rehabilitation hospitals, memory care units and skilled nursing/assisted living assets.