Investors like DaVita's small price point and the fact that kidney dialysis is a growth industry. Investors take security from the tenant's investment in the build out of the property along with the installation of specialty trade fixtures that make it less likely for the tenant to leave at lease expiration. The very nature of DaVita's business means a steady and growing routine amongst its clients develops over time providing a reliable income stream tied to an often visited location.

According to the Centers for Disease Control and Prevention, more than one-third (34.9% or 78.6 million) of U.S. adults and approximately 17% (or 12.7 million) of children and adolescents aged 2-19 are considered obese. The obesity epidemic has caused an increase in diabetes, which currently leads to roughly 44% of kidney failures. Due to the increase in obesity, diabetes and kidney failure, the need for medical facilities offering dialysis will continue to grow. Typically, patients require three dialysis procedures per week, each procedure taking 3-4 hours. Although a bit morbid, the reality is that dialysis centers can depend upon customers visiting frequently each week which creates an inelastic demand for their services.

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Jonathan Hipp

Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.