As real estate investors have sought safe havens in a tumultuous 2020, the medical sector has been a ripe target. Life sciences were on the upswing even before this year. But the search for vaccines and therapeutics to battle COVID-19 have boosted lab space.
For traditional doctor's offices, the story is a little more mixed. COVID-19 has done a number on private practices. During the Spring shutdowns, many doctors' offices had to close their doors or reduce hours as patients stayed at home. Many tapped into the Paycheck Protection Program (PPP) to find much-needed funding to keep practices afloat.
The uncertainty surrounding doctor's offices filtered down to net lease investors. According to The Boulder Group, in Q3, cap rates for general doctor offices rose 16 basis from Q3 2019 to 6.91%.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
