SCOTTSDALE, AZ—Healthcare real estate has become a more widely recognized asset class. In 2017, sales of medical office buildings reached record highs despite uncertainty over healthcare reform, value-based reimbursement and changes to the healthcare delivery setting. According to RealShare Healthcare's Deal Flow Drivers panel, the demand is there, but the supply is harder to come by.
“An aging population creates additional needs for healthcare services and will continue to increase demand for modern, well-located space for years to come,” said panelists, but one of the biggest concerns in the space, or at least new space, is the rising construction costs, panelists added.
In addition, there has been an increase in large well-diversified portfolio sales as trends continue to support migrating to lower cost outpatient settings. When moderator Stefan Oh, EVP of acquisitions at American Healthcare Investors, asked about demand, all panelists agreed that things are healthy, noting that there is additional capital coming into the healthcare space.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.