With funding support from the federal government and the growing need for mental health facilities nationwide, this niche commercial real estate sector is evolving and emerging as a viable investment opportunity, including drawing the attention of REITs.
The Substance Abuse and Mental Health Services Administration noted in a 2021 survey that nearly 1 in 4 adults 18 and older, and 1 in 3 among adults aged 18 to 25, had a mental illness in the past year.
The fastest growing sector in this asset class has primarily been the substance use disorder treatment facilities, writes Justin Butler, leader of the Healthcare Valuation Practice Group for Colliers.
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