Jason Signor

➤➤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.

DALLAS—One of the US' fastest growing industries,healthcare spending reached almost $3.5 trillion annually in 2017.The US Centers for Medicare & Medicaid Services anticipatesnational healthcare expenditures to grow to $5.7 trillion by 2026.With this growth, healthcare real estate, specifically medicaloffice buildings, are poised for further success.

Medical Office Buildings

Medical office buildings comprise approximately 10% percent ofthe US office sector. These buildings are typically about 40,000square feet and range from small physician offices to largehealthcare systems. Investors are attracted tothis asset class due to its stability and positive forecasts for astrong performance. On the rise for the last four years, medicaloffice sales totaled $10.4 billion in 2018.

"Medical office buildings are so popular and are in demand as arenovation or as new construction," says Jason Signor, CEOand partner of  Caddis Healthcare Real Estate."The market is phenomenal and occupancy levels and rental rates arehealthy."

It is well-known that the the aging US population is directlycorrelated with the rising demand for healthcare as doctor visitsdramatically increase with age. Individuals 65 years and olderspend five times more on healthcare than those who are younger.Yet, even with the favorable demographic and economic backdrop, newhealthcare construction has not kept up with demand.