Healthcare Real Estate Overview
According to Stifel healthcare investment banking leaders, healthcare spending is currently about 18.5% of the GDP. That is a slightly higher percentage than it has been over the last decade. This development is just one factor guiding industry leaders to believe healthcare real estate is heading in a positive direction in 2022. However, we should note that labor, inflation, and rising interest rates may present a few challenges.
In 2020 and 2021, we released an overview of upcoming healthcare real estate trends. We’ve seen these trends expand over the last couple of years. Now, we are watching how they will continue to impact the market in 2022.
Technology in Healthcare Delivery
In 2022, we can continue to expect technology to be at the forefront of healthcare delivery. According to one source, telehealth usage is 38 times higher than before the pandemic. At the very least, technology will continue to be vital to healthcare in 2022 and continue to grow and evolve.
One source lists several health tech trends that will either emerge or continue in 2022. For example, the Internet of Things (IoT) medical devices segment could reach $9.4 billion by 2026. The source also includes extended reality tech products like the Microsoft Hololens, which surgeons can wear to view 3D holographic images of patient scans. Additionally, tech like AI and drones may be a part of pharmaceutical production and delivery in the future—if not in 2022, then perhaps within a decade or two.
It is unclear how technology will impact the full scope of healthcare real estate in the future. Currently, telehealth appointments require offices or flex spaces with appropriate technologies for physicians to virtually meet with their patients. But other advancements may begin to require new types of healthcare commercial real estate (CRE) spaces. New emerging healthcare models like CloudClinics may inspire more unique healthcare spaces to enter the market. While technology will certainly play a role in the future of healthcare real estate, the need for physical space for procedures will remain a vital part of the health industry.
Biotech and Life Sciences Trends
Life sciences may continue to be a strong player within healthcare real estate in 2022. According to Stifel Co-Head of Healthcare Investment Banking Mark Dempster, the biotech and life sciences segment is still drawing investor attention. In Boston, a market known as one of the strongest in the life sciences segment, laboratory vacancy rates are about 1.7%. In addition to the low vacancy rate, CRE spaces have been converted into laboratory spaces to meet demand. Another source reveals that in the third quarter of 2021, the Boston-Cambridge area increased to 42 million square feet of lab inventory. These trends provide evidence that life sciences and biotech could have a positive outcome in 2022.
Partnering with a Healthcare Real Estate Practice
Healthcare real estate is continuously adapting to demand and the market at large. As 2022 unfolds, medical professionals should strongly consider partnering with a healthcare real estate practice to offer guidance through the nuances of healthcare real estate trends.
At HBRE, we have a team of healthcare real estate advisors that monitors trends and guides our medical clients accordingly. We maintain an ongoing relationship with healthcare industry personnel to ensure we are keeping up with the latest news in the sector.
Unlike many CRE practices, HBRE solely focuses on healthcare real estate. Our focus on this niche sector allows us to gain the unique skills necessary to serve this specialized market segment. Collectively, our team has decades of experience, allowing us to provide our clients with the very best in advisor knowledge and expertise. Medical professionals seeking assistance in buying, selling, or leasing healthcare real estate can trust our team to serve them to the best of our ability.
If you are interested in learning more about investing in commercial real estate, or if you have questions about buying, selling, or leasing a commercial property, please contact an HBRE advisor. Our team of experienced CRE professionals have the skills and insight to assist with all property transactions. To reach out to us directly, email [email protected] or call 615-564-4133.
