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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