Four Key Trends Driving Healthcare Real Estate Investment

The convergence of healthcare and real estate continues to thrive, but what are the latest trends driving investment? To find out, please join us for Bisnow's fourth annual healthcare real estate event, How Attractive is That Investment?, on July 28 at the Swissotel Chicago, starting at 7am.

1. Consolidation

Among our panelists, HSA Primecare president John Wilson (pictured), says he continues to see consolidation of providers. More physicians are working under service agreements or their practices are owned by hospital systems. Coupled with hospitals acquiring or partnering with other providers, that's driving current real estate decisions, he tells us.

2. Lease Flexibility

Another panelist, Loyola University Health System director of real estate Michael Becker, says there's a growing demand for flexibility in lease structures. This provides the ability to adjust to market factors so healthcare groups can expand and contract or enter and exit markets as necessary. Loyola leases its ambulatory portfolio for such flexibility.

3. Decentralizing Patient Care

Fitzgerald Architecture Planning Design principal Daniela Fitzgerald (shown), also a panelist, says a decentralized model of patient care is gaining steam. Her healthcare clients these days tend to be smaller groups setting up multi-office, multi-location practices that are viewing patients in terms of treating them for wellness and prevention as opposed to treatment. Daniela says she's working with these clients on everything from proprietary design features to color schemes in offices to provide a thread of continuity from space to space, yet still cater to neighborhood demographics.

4. Doctors Are Accepting Development Risks

Panelist Loren Guzik, a senior director at Cushman & Wakefield and a panelist, says healthcare groups possessing a better understanding of the real estate development process and cap rates are more willing to accept the risks and paying developers flat fees to build new facilities. To learn more, please join us for How Attractive Is That Investment?, July 28, at the Swissotel Chicago starting at 7am. Register here.

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