Jonathan Hipp
Fresenius and DaVita are the top two dialysis providers in the nation. Demand for these centers has increased dramatically in recent years due to the aging baby boomer population and rising obesity rates. This niche within the medical sector is expected to grow. Both are considered stable tenants because of the market demand, attractive cap rates, and credit rated companies.
DaVita and Fresenius are generally located in freestanding buildings with others being in strip centers. The lease structure of these dialysis centers often includes annual rent increases and option periods. Dialysis centers are located in close proximity to the hospitals and medical offices in an effort to bring the centers closer to their patients. Since kidney dialysis requires routine visits, there is a guaranteed income stream for these tenants.