As doctors continue to adjust to Obamacare compliance, the overarching theme where commercial real estate's concerned is still uncertainty. Bottom line: Investors are finding stable assets tough to ID, given doctors aren't willing to commit. That's why we're excited to present Bisnow’s How Attractive Is That Investment? event on July 28 at the Swissotel Chicago, starting at 7am.
Among our panelists, Cushman & Wakefield senior director Loren Guzik (pictured, left), says the overall strength of the medical office building market is actually healthy but dependent on location. Doctors groups are following where the demand for healthcare is greatest. There are pockets where MOBs have been overbuilt and demand is lacking like Elgin, while along 95th Street in Oak Lawn near Advocate Christ Medical Center, buildings are delivering and occupancy is full. Established doctors groups are hesitant to make long-term commitments on investments as there's a higher expense involved and it's harder to find revenue streams.
Loyola University Health System director of real estate Michael Becker, who'll also be a panelist, says there's high demand for MOBs among developers and clients looking to build. He finds access to capital is a driving force in the consolidation of smaller providers seeking to upgrade aging infrastructure. Michael adds Loyola isn't constrained by capital, and the university continues to invest in its inpatient and outpatient portfolio. Obamacare has led to Loyola becoming more attuned to approaching healthcare from a population-based perspective. Loyola has been active in establishing accountable care organizations to voluntarily provide high-quality care to its Medicare patients. This and digitizing patient records has resulted in continuity of care across the patient population as it provides integration across healthcare provider platforms and driving efficiency as doctors aren’t asking repetitive questions to their patients and tests aren’t being duplicated. To learn more, please join us for How Attractive Is That Investment?, July 28, at the Swissotel Chicago. Register here.
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