Alan Pontius photo Pontius leads Marcus & Millichap's Healthcare Real Estate Group.

CALABASAS, CA—A Wall Street Journal story earlier this week on healthcare REITs noted that many real estate trusts in the sector are scaling back their skilled-nursing holdings and looking to hospital and medical-office acquisitions as better bets. Marcus & Millichap's latest report on the medical office building sector offers insight into why: a combination of increased healthcare coverage and an aging population.

“Since the inception of the Affordable Care Act, medical insurance coverage has extended to nearly 90% of the US population, up from a low of approximately 84% in 2010,” according to Marcus & Millichap's third-quarter Medical Office Research report, prepared with input from the firm's Healthcare Real Estate Group, led by SVP and national director Alan Pontius. “This, combined with the aging of our nation's baby boomer generation as they move closer to their golden years, is increasing the need for medical services across the country.”

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.