Healthcare and real estate are both in a period of transition. Whether due to economic uncertainty, regulatory challenges, or technological advances, healthcare and real estate stakeholders are working together to create spaces that adapt and evolve in tandem with progress in the medical arena and societal needs.
The latest trends in healthcare and real estate are influencing space needs, asset value, capital investment strategies, and overall market performance. Hospitals, physicians, and investors are reassessing their real estate portfolios to maximize value through the strategic deployment of capital in MOBs, long-term care facilities, and other healthcare assets. Across the U.S., healthcare systems and providers are leveraging real estate as a key lever to enhance patient access, improve market share, drive new revenue, and foster an integrated culture that drives innovation and growth.
Despite recent challenges and rising interest rates, healthcare transactions continue to close at a steady pace, and are attracting new investors who typically focus on office, retail, and multifamily sectors. Additionally, the sector is relatively resistant to economic volatility, which has increased investor confidence in 2022. However, a number of healthcare and real estate experts have indicated that the road ahead is likely to be more bumpy than smooth. With inflation and construction costs still high, and interest rates remaining elevated, the industry could experience a slowdown in the ability to build new assets. This could impact the industry’s ability to expand services and ultimately increase healthcare prices and patient costs. healthcare and real estate