Healthcare Real Estate Scope is Broadening

IRVINE, CA—The healthcare real estate sector is becoming more diverse than ever as medical care moves away from the acute-care setting and Baby Boomers become seniors. In a recent article in GlobeSt.com’s sister publication Real Estate Forum, executives from this sector said that there are more product types than ever in which investors can place their money and get a good yield.

Danny Prosky, founding principal of American Healthcare Investors and president and COO of Griffin-American Healthcare REIT II Inc., says that the scope of properties to invest in has broadened, particularly for his REIT. “We buy medical-office buildings, hospitals, senior living and skilled nursing, and we compete with others in those categories. It’s also going toward life sciences and biotech. All of those clinical-healthcare classes are in favor, although some types—such as medical office, senior housing and skilled nursing—certainly tend to trade at lower cap rates than others.”