The demand for the amount of medical space needed in the next 10 years is projected to be 16% more than is currently available today. Investment dollars generally flow into a sector where a continued higher demand creates a more consistent cash flow model due in part to longer term leases and lower vacancy rates. The medical real estate sector continues to deliver for investors.
With the aging US population, largely driven by the baby boomer generation, demand for medical real estate continues to increase in markets all across the country. The oldest of the 78 million post-World War II baby boomers began reaching age 65 in 2012, whereas the youngest of that age group will reach 65 in 2029.
Sources: https://www.globest.com, https://costar.com
