Nearly three-quarters of healthcare companies recently surveyed say they're considering leasing instead of owning commercial real estate, lured by the promise of more flexibility as COVID-19 continues to wreak havoc on decision making.

Nearly one in five respondents surveyed by Ryan Companies also said they are putting COVID-19 relief funds toward remodeling or renovating amid historic staffing shortages. Only 5% said they could consider building new inpatient facilities. And of the 70% that would consider leasing over owning, 40% said that decision was "somewhat likely," 17% said it was "likely" and 13% said it was "very likely."

"Healthcare organizations must make sound investments that maximize limited resources and anticipate future service needs, like the continuing shift to outpatient environments and how the needs of their communities are changing," said Mike McMahan, executive vice president of healthcare, Ryan Companies. 

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.