SCOTTSDALE, AZ—For many years the healthcare industry has been widely considered a resilient and fast-growing sector, but when the global pandemic arrived the healthcare sector worried that it too would not be immune from the devastating effects. However, healthcare real estate was quick to show early signs of promise and savvy investors could really profit nicely if they navigate correctly. So said panelists at this year's in person GlobeSt. Healthcare Real Estate national conference.
According to Jon Foulger, director of acquisitions at MedProperties Realty Advisors LLC, many of the new entrants coming into the market carry heavy allocations relative to the size of the healthcare market but "trying to find deals where the institutional folks can allocate their money is a challenge."
According to Andy Cooper, investment officer at Ventas Inc., during the pandemic, a number of sectors went off the radar for investors and they saw the strong performance of the healthcare market and jumped right in on what they could pick up. He explained, like other panelists at the event, that he sees some additional yield in the behavioral space, but says that "you really have to understand the tenant and the strength of the operator."
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