From a worldwide pandemic to economic uncertainty, there is no doubt that the last few years have made a significant impact on the healthcare industry. Nevertheless, the changes that have occurred during this time seem to indicate a promising future for the healthcare real estate industry. As a result, competition is increasing for medical office real estate due to increased interest from investors. This article takes a look at the most important healthcare trends in 2022 and their likely impact on real estate.
Increase In Capital
Due to continued interest and support from investors who are looking to diversify their portfolios, more capital is likely to flow into the healthcare real estate sector. Despite the unpredictability of the economy, the overall outlook of the industry remains positive due to the high demand for healthcare services. Moreover, the healthcare sector has proved to be resistant to economic downturns and recessions, which has increased investors’ confidence. Investors are expected to focus on this market for the foreseeable future due to its low volatility.
Boom In The Life Sciences Sector
The life sciences sector, especially biotech, has experienced a boom in interest due to advancements in technology and the potential for groundbreaking developments in most aspects of medicine. Because of this, real estate investors continue to see it as an effective way to maximize their return on investment. As investments in the life sciences by venture capitalists hit a high, roughly $52B in 2021 up from $39B in 2020, the real estate sector is expected to continue growing along with the industry itself. Outside of industry growth, there has also been a decrease in laboratory vacancy rates and a lack of growth in on-campus medical office buildings which has led to low supply and high demand of healthcare real estate.
Technological Innovation
Technological innovation is another factor that will continue to influence the healthcare real estate market. While telemedicine may be helping some people stay inside their homes, other innovations still require patients to receive care from within a healthcare facility. As you would normally expect, services such as MRIs, X-rays, and Ultrasounds are still conducted in-person, however, thanks to technological innovations, these services are able to be offered outside of traditional hospital settings. This means that satellite offices or standalone practices will get to care for more patients and patients won’t have to travel as far to get care. Although the true effects of technology on healthcare real estate is yet to be seen, it is likely that telemedicine will only be used to supplement traditional in-patient appointments rather than replace them all together.
Greater Focus On Outpatient Clinics
Many patients now prefer to visit outpatient clinics instead of large hospital campuses. Outpatient services offer similar care at more affordable rates. Additionally, these suburban clinics are ideally located in residential areas, which makes them a more convenient and desirable option. And as a result, patients can avoid commuting to and navigating large hospital buildings. With an increased interest in outpatient services, the healthcare real estate industry will undoubtedly be impacted, as there will be an increased demand for medical office buildings to facilitate the services.
If you have any questions about leasing, buying, or selling healthcare real estate, connect with our team 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.
If you have any questions about leasing, buying, or selling a commercial property in Nashville or beyond, connect with our team today.
