Digital Health Funding Has Fallen to 2016 Levels

Medical office has been a strong CRE sector for years and has particularly shone through the pandemic period. It brings in traffic with the feeling of something that benefits the community; supply hasn’t outpaced demand, which has remained strong; tenants are long-term; and there is usually good revenue and credit to safeguard lease payments.

However, there is tension as the healthcare industry pushes on digital medical services and telemedicine to broaden the reach of care providers, increasing efficiency. With monitoring, testing, consultations, wellness, health data, and other digital services, there would seem the potential to lessen office visits and, eventually, have a potential impact on medical office demand.