Chris Barnet, managing director, principal with GVA Cawley'sHealthCare Real Estate Advisory Group in Dallas says there hasbeen, in recent years, increasing medical care demand frompatients. This is especially the case as baby boomers continue toage, live longer and require more health care.

As a result, Barnet continues, there are two reasons why medicalreal estate will likely weather the economy better than otherproduct. "First, there's an increasing demand for the product," hesays. "Second, health care deals typically have strong credittenants behind them."

Because of these issues, medical real estate is different fromthe standard office product. "Going forward, there will be a biggerdifferential between medical office buildings and other types ofreal estate," comments Henry Hagendorf, vice president, office andmedical properties, with Grubb & Ellis Co.'s Houston office."It's historically proven to be a safer investment strategy, andthey have a reason for being there. To treat patients."

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