Jon Hipp
The medical sector is one of the quieter, more under the radar property types within the net lease world. Though not as abundant as dollar stores or ubiquitous as fast food; medical net lease properties offer investors steady cash flows, low-to-no management burden, and cap rates which beat out other similarly sized deals. Furthermore, an aging demographic shift will help ensure this asset type remains a viable investment well into the future.
Dissecting the Sector
For the purposes of this analysis we're defining the medical sector as the service industry that provides healthcare services to the retail public. We're excluding from this however, the dialysis providers and actual hospitals as they really require their own separate analysis. We're limiting ourselves here to primary care physicians, specialty medical practices, eye doctors, dentists, urgent care, and plasma donation centers. Most of these businesses operate out of free-standing facilities or end caps in retail/mixed-use centers, generally in highly trafficked areas.
Calkain's recently released Medical Sector Net Lease Report 2019 noted a cap rate increase to 6.99% from the 6.82% cap rate reported in late 2018. This increase is pretty modest.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
