On one hand, healthcare real estate is fortunate. There is plenty of capital available for deals. On the other, that capital is more expensive today, like it is for much of the rest of the commercial real estate world. But because healthcare CRE assets continue to be sought after by investors, deals are still getting done, according to panelists at GlobeSt.com HEALTHCARE real estate event held this week in Scottsdale, AZ.
Part of that is due to a lack of inventory with more investors, said Colliers Senior Managing Director Kim Kretowcz. At the same time, "private equity money just continues to grow and grow in our sector. So there's activity, it's just [a matter of] readjusting the value of that property to meet the current capital cost."
That is not to understate the hard numbers underlying such transactions. "Financing and debt is probably the single most significant thing driving the market right now," said Jonathan Buehner, senior vice president at Capital One Healthcare.
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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.
