CHARLOTTE, NC—Following a year of expansion in healthcare real estate, one which saw medical office buildings reach an all-time low for vacancy, 2017 is getting underway with challenges that are slowing the decision-making process. Chief among these, says Colliers International in a new report, is the likely repeal of the Affordable Care Act and the details of coverage to replace it.

“The impacts I'm seeing are on the healthcare provider side—just a real slowdown in decision-making,” Mary Beth Kuzmanovich, national director, healthcare services, tells GlobeSt.com. “There are a couple of projects I know of in the Northeast where lease negotiations were in progress and the organization said 'stop, we're not going to make a big investment until we hear what's happening to our reimbursements and what's happening to the industry.'

“We're seeing a series of organizations that are taking another look at their capital budgets on what's necessary or mandatory and what could perhaps be considered discretionary, and holding off on the discretionary things,” she continues. “In some cases, a real estate investment on a new location would be considered more discretionary than, say, a roof replacement or air conditioining system replacement.”