Deal flow in the healthcare sector has slowed as capital costs continue to rise – but pockets of opportunity exist for developers and investors as demand for consumer-centric medical facilities continue to rise. 

"There are buyers and there are sellers, but they don't seem to be hanging out at the same party," Jon Boyajian of Echo Real Estate Capital, Inc. tells GlobeSt exclusively ahead of next month's healthcare conference in Scottsdale, Ariz, where he'll speak as part of a panel on the future of healthcare facilities. But with that said, a "tremendous" amount of capital is chasing medical office deals, in what Boyajian calls neither an accident nor a coincidence. 

"Demand for space has outpaced new supply – which is good news for owners of existing assets and value add-investors," he says. "Construction costs are not coming down to the point where new development is a viable option relative to retro-fitting second or third generation spaces.  Our medical portfolio is performing very well from a leasing standpoint.  In some markets, there is land available for development, but it takes too long and costs too much for it to be a competitive alternative to existing buildings."