In 2021, healthcare investor and developer Meridian had a banner year, closing more than $100 million in transactions, all located in the State of California, and $40 million in new development activity, with projects located in five states. As the firm looks ahead into 2022, it plans to remain an active buyer, but CEO John Pollock says this will be a more challenging year for both purchases and new construction.

"All arrows point to a more challenging year in 2022 for acquisitions and development," Pollock tells GlobeSt.com, citing expanding bid-ask spreads, supply chain issues, labor shortages, rising interest rates and inflation as contributing factors. "Those are all going to make it more challenging to purchase and build in 2022."

When it comes to new development, labor and material shortages are, perhaps, the biggest challenges facing the delivery of healthcare product. "Our clients expect us to give them a number early in the process, usually with a back-of-the-napkin sketch, and due to the perfect storm of market disruptions, we are finding it increasingly difficult to predict the availability and/or prices of material," says Pollock. "We pride ourselves on having never missed a budget or schedule and the current environment is really challenging the team."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.