Medical office has been a strong CRE sector for years and has particularly shone through the pandemic period. It brings in traffic with the feeling of something that benefits the community; supply hasn't outpaced demand, which has remained strong; tenants are long-term; and there is usually good revenue and credit to safeguard lease payments.

However, there is tension as the healthcare industry pushes on digital medical services and telemedicine to broaden the reach of care providers, increasing efficiency. With monitoring, testing, consultations, wellness, health data, and other digital services, there would seem the potential to lessen office visits and, eventually, have a potential impact on medical office demand.

That could be, although it is hard to imagine how a health care practitioner could fully practice without any physical interaction with a patient. However, if basic vitals could be taken remotely, imaging and other testing more easily and inexpensively done in non-traditional settings, even insurance processing sped up to reduce the need for as much office staff, medical facilities could potentially see significant changes.