Unlike most other commercial real estate sectors, healthcare real estate continued to perform admirably throughout the COVID-19 pandemic. Though the sector experienced drastic restrictions, safety precautions and modified practices, the entire healthcare market is well on its way to recovery.
Proving durable during the pandemic, medical office buildings now serve as permanent fixtures in many investors' portfolios and the asset class's pricing is now at a premium.
According to Marcus and Millichap, the rise in population aged 65 and older and a rise in elective procedures and routine appointments could increase the number of buyers of sub-$10 million on-campus and off-campus assets this year. Additionally, despite a rise in telemedicine during the pandemic, Colliers reports that medical office space remains a hot target for institutional investors, which accounted for about 35% of buyers in the early part of this year, compared to 31% in 2020.
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Ingrid Tunberg
Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.
