Medical office is on the short list of real estate assets to emerge from the pandemic better off. The property sector proved to be resilient through the pandemic with steady rent collections and strong tenant demand.

"The attraction to healthcare real estate spring boarded out of the way that the market weathered the storm in 2020. Now, there is a flight to healthcare by people that weren't in the space before and there is a larger allocation of dollars coming to healthcare assets. Investors saw that in the worst of the pandemic, healthcare was still able to perform," Jon Boyajian, a principal at Echo Real Estate Capital, tells GlobeSt.com. Boyajian is speaking on trends in healthcare investment at the GlobeSt.com Healthcare conference currently underway.

As the healthcare market has heated up, demand in the office sector has waned—but office properties with a medical office tenant are rebranding to generate investor interest. Properties with as little as 25% medical office are being marketed as healthcare. "All you need is one medical office tenant, and it is trying to be pitched as a medical office deal," says Boyajian. "It may have insurance offices, marketing firms, accountants and a smattering of other office uses, but if you have one healthcare tenant, it is being billed as a value-add medical office deal."