ATLANTA—Capital One recently conducted a survey of 100 professionals across the senior housing industry. Respondents identified the West Coast, Southeast and Southwest as top regions for continued investment in the next year.
However, the study concluded, maximizing opportunities in this growing sector requires companies look to experienced partners who understand the healthcare real estate space and submarket dynamics. That, of course, can vary on a local level.
“Hotspots for healthcare real estate mirror the national trends in many cases, with markets like Denver, Nashville, Atlanta and Dallas positioned as high growth areas,” says Mary Beth Kuzmanovich, national director of Healthcare Services for Colliers International, tells GlobeSt.com. “In addition, markets with strong healthcare providers and medical schools are also prime locations, with Houston, New York, Boston and Chicago as examples.”
Kurt Hutter, executive vice president, at Wilmington, DE-based Anchor Health Properties, a full service development company focused exclusively on the development of medical facilities, adds another perspective. He tells GlobeSt.com the healthcare real estate hotspots are essentially anywhere there are two or more healthcare systems competing for the same consumers.
The heat in any market grows exponentially as the number of competing systems increase. That makes most metropolitans and surround suburbs a key target for developers and investors. Of course, healthcare is a local industry and each market is different so it's difficult to call out all the hotspots, but Hunter Beebe, managing principal of HRE Capital, a national advisory firm focused solely on the healthcare real estate sector, offers a sound rule of thumb.
“Areas with stable and growing economic and demographic profiles will generally be a long-term strength for the asset class,” Beebe tells GlobeSt.com. “However, the profile of that demographic also drives success. Elderly citizens have three times as many medical office visits per year than those under the age of 45, so markets with aging populations are expected to perform well. It's also important to consider the tenancy and sponsorship, assets that are sponsored and occupied by major, investment grade rated healthcare providers across large and small markets will perform well.”
Join the conversation on April 28 for RealShare ATLANTA, the metro's premier CRE event. Click here for details and to register.
ATLANTA—
However, the study concluded, maximizing opportunities in this growing sector requires companies look to experienced partners who understand the healthcare real estate space and submarket dynamics. That, of course, can vary on a local level.
“Hotspots for healthcare real estate mirror the national trends in many cases, with markets like Denver, Nashville, Atlanta and Dallas positioned as high growth areas,” says Mary Beth Kuzmanovich, national director of Healthcare Services for Colliers International, tells GlobeSt.com. “In addition, markets with strong healthcare providers and medical schools are also prime locations, with Houston,
Kurt Hutter, executive vice president, at Wilmington, DE-based Anchor Health Properties, a full service development company focused exclusively on the development of medical facilities, adds another perspective. He tells GlobeSt.com the healthcare real estate hotspots are essentially anywhere there are two or more healthcare systems competing for the same consumers.
The heat in any market grows exponentially as the number of competing systems increase. That makes most metropolitans and surround suburbs a key target for developers and investors. Of course, healthcare is a local industry and each market is different so it's difficult to call out all the hotspots, but Hunter Beebe, managing principal of HRE Capital, a national advisory firm focused solely on the healthcare real estate sector, offers a sound rule of thumb.
“Areas with stable and growing economic and demographic profiles will generally be a long-term strength for the asset class,” Beebe tells GlobeSt.com. “However, the profile of that demographic also drives success. Elderly citizens have three times as many medical office visits per year than those under the age of 45, so markets with aging populations are expected to perform well. It's also important to consider the tenancy and sponsorship, assets that are sponsored and occupied by major, investment grade rated healthcare providers across large and small markets will perform well.”
Join the conversation on April 28 for RealShare ATLANTA, the metro's premier CRE event. Click here for details and to register.
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