Healthcare Tenants Push Forward on Lease Commitments

Healthcare tenants have shown more apprehension to make long-term lease commitments during the pandemic, but many are continuing to push ahead anyway and sign new leases, particularly for those that with upcoming renewals. JLL’s Los Angeles healthcare real estate team has signed several lease transactions in the last three months, even as the market continued to change and many in-person doctors’ appointments slowed down.

“We are seeing that most healthcare tenants know that they will need their space for the short and the long term,” Chris Isola, EVP at JLL, tells GlobeSt.com. “Work from home doesn’t really work for medical, as no doctor has an exam room or operating room in her house. Healthcare occupiers typically can only generate revenue in their premises. And despite a significant increase in telehealth, most of healthcare remains a contact sport. Therefore, in the last quarter we have completed a number of transactions and overall our transaction volume is comparable to 2019.”