Location is Vital for Healthcare Assets

The outpatient dialysis clinic is located in a busy corridor near Kaiser Permanente and Sutter hospitals.

OAKLAND, CA—The 65 and older population has grown at an annual pace greater than 3% since 2011. This age group is anticipated to increase by 20 million people by 2028 and will comprise 20% of the nation’s population base, so says a mid-year medical office report by Marcus & Millichap.

Furthermore, mergers among healthcare companies and providers has been a driving force behind changes in the industry and how physicians interact with patients. Emerging technologies and a shift in the care delivery model are spilling over into the development of medical offices. A rise in outpatient services and procedures has encouraged medical office development in off-campus locations the past few years. Hospitals and medical providers seek to place offices in neighborhoods and suburban areas, closer to where people live and work, in order to reduce costs and offer convenience to patients seeking medical care.