Unlike most other commercial real estate sectors, healthcare real estate continued to perform admirably throughout the COVID-19 pandemic. Though the sector experienced drastic restrictions, safety precautions and modified practices, the entire healthcare market is well on its way to recovery.
Proving durable during the pandemic, medical office buildings now serve as permanent fixtures in many investors' portfolios and the asset class's pricing is now at a premium.
According to Marcus and Millichap, the rise in population aged 65 and older and a rise in elective procedures and routine appointments could increase the number of buyers of sub-$10 million on-campus and off-campus assets this year. Additionally, despite a rise in telemedicine during the pandemic, Colliers reports that medical office space remains a hot target for institutional investors, which accounted for about 35% of buyers in the early part of this year, compared to 31% in 2020.
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Skilled nursing assets are also recovering thanks in part to an abundance of private sector investors looking to take advantage of opportunities in the space. Additionally, healthcare net lease has gained newfound interest beyond urgent care.
While stably recovering, healthcare real estate is still experiencing a myriad of changes, mainly in the guise of new technology and processes, which could potentially affect the related real estate.
Research from JLL states that telehealth peaked at 52% of patient visits at the beginning of the pandemic and now stands at about 19% of patient visits. However, 78% of surveyed health system CFOs say they will invest more in technology to enable telehealth, even as 53% said they plan to decrease spending on optimizing physical assets.
After a harrowing year of a nationwide health scare, stakeholders and consumers alike are rethinking how healthcare should be delivered. The healthcare real estate professionals that navigated the effects of the pandemic are now well-positioned to handle whatever changes the future may bring.
In that spirit, GlobeSt. Real Estate Forum is looking to shine a spotlight on the people and firms that shape the healthcare real estate market and continue to drive its performance. The Influencers in Healthcare Real Estate series will profile not only the pioneers who have made an impact with their individual efforts, but also the teams and entire organizations that have become critical to the industry.
Be it through their contributions to the industry, the vast successes they've racked up in completing deals and projects, or the innovations and best practices they've introduced to the business, these are the 2021 Influencers in Healthcare Real Estate.
The deadline for nominations is August 20, 2021. To apply, click here.
For additional information, please view the series' FAQs page.
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Ingrid Tunberg
Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.
