➤➤Join the GlobeSt.HEALTHCARE (formerly RealShare)conference December 3-4 in Scottsdale, AZ. The event will cover theindustry's major issues as well as the prevailing and upcomingtrends in regulations, space use, budgeting, and technologyimplementation. Through panel discussions and peer-to-peernetworking opportunities, the attendees will gather expert insightson how these factors will affect the development, operation,investment and design of healthcare real estate. Also, be sure toget your nomination in for our healthcareinfluencer and seniorhousing influencer feature. Clickhere to register and view theagenda.

"The expansion has been fueled by the demand of the healthcareconsumers to have their healthcare services located near theirhomes," Bryan Lewitt, managing director atJLL, tells GlobeSt.com. "In most cases healthcareconsumers do not live close to the hospital campuses. This hasforced the hospital systems operators other and other ancillariesservice providers to relocate their services to the community wherethey want to serve."

In addition to demand, the campus model is also moresustainable, particularly due to a changing regulatory environment."After being in the community in the past five to seven years thehospital system operators are finding it very difficult to run aprofitable business off-campus. Due to all the regulations placedupon hospitals and reduced reimbursements most of their off-campusventures are losing money," says Lewitt. "However, in someinstances where the hospital system has a very good market share ina very wealthy neighborhoods off campus locations work forthem."

This shift in strategy has had a major impact on leasingactivity for both on- and off-campus medical buildings. "There aremany well located retail centers that have been beneficiaries ofhealthcare providers to their centers," says Lewitt. "Currently 10%of all healthcare facilities in Southern California are located isin a retail center. This has doubled from only 10 years ago.Secondly, off-campus medical buildings have also benefited. Theoff-campus medical buildings have benefited because it is nowacceptable for the investors and the financing world to value theseoff-campus buildings close to an on campus medical building due tothe credit of these tenancies."