Investing in Opportunity Zones (OZs) can provide significant benefits for healthcare practices and healthcare real estate investors. Opportunity zones are areas designated by the government as economically-distressed communities in need of investment. Investors and healthcare practices can expect several benefits from investing in these areas.
Healthcare Practices in Opportunity Zones
Opportunity Zones (OZs) create several location benefits for healthcare practices:
Access to new patient populations: Healthcare practices located in opportunity zones offer a unique chance to not only increase their revenue by accessing a new patient population but also improve healthcare access for underserved communities.
Cost savings: Often found in economically-distressed communities, OZs can provide healthcare practices with access to cost-effective real estate options which may help reduce overhead.
Opportunity Zones represent a unique opportunity for healthcare practices to gain access to and resources in underserved communities. Exploring these areas offers an exciting chance for growth and development with long-term potential benefits.
Tax incentives: Healthcare practices in OZs may be eligible for specific tax incentives, such as reduced taxes on business income or credits for hiring employees from the area in which they are located.
Community development: By investing in underserved areas, healthcare practices can play a role in community revitalization by promoting economic growth, which can help improve the community’s overall health and well-being.
Improved access to care: By providing healthcare services in underserved communities, healthcare practices can help to improve access to care and reduce health disparities.
Attracting and retaining talent: OZs can be excellent locations to attract and retain employees who want to work in areas where they can positively impact the community.
The Benefits of Investing in Opportunity Zones
For healthcare real estate investors, investing in opportunity zones can provide a number of benefits, including:
Tax incentives: Investors may take advantage of various tax incentives, including deferring taxes on prior gains, reducing taxes on future gains, and even eliminating taxes on certain gains altogether.
Increased potential for higher returns: With access to properties at a lower cost, investors can typically expect higher returns on investment.
Diversification opportunities: Investing in OZs can provide diversification opportunities for investors. By diversifying investments across different asset classes and markets, investors can reduce the overall risk of their portfolio.
Putting it All Together
It’s important to note that the benefits of being located in or investing in opportunity zones can vary depending on the location and the regulations in place. As a result, the process can be complex, and it’s important to exercise due diligence and perform thorough research on the specific opportunity zone before making any investment decisions.
Before you make a commitment, consult with a healthcare real estate expert to understand the specific market you’re interested in. If you’re interested in investing in opportunity zones for your healthcare practice or as an investment opportunity, contact our team of healthcare real estate experts today.
About HBRE
Headquartered in Nashville, Tennessee, HBRE is a full-service commercial real estate firm specializing in healthcare real estate. With over 50 years of combined industry experience serving 28 states across the U.S., we deliver exclusive healthcare solutions so you can provide the best patient care.
Looking for healthcare real estate for your practice or as an investment? Explore our collection of available medical office spaces here.
