Investors like DaVita’s small price point and the fact thatkidney dialysis is a growth industry. Investors take security fromthe tenant’s investment in the build out of the property and theinstallation of specialty trade fixtures that make it less likelyfor the tenant to leave at the end of the lease term. The verynature of DaVita’s business means that a steady and growing routineamongst its clients develops over time providing a reliable incomestream tied to an often visited location.
Due to America’s heightened obesity – over 133,000,000 Americansare considered overweight - and aging population, the occurrence ofdiabetes is increasing. As diabetes leads to roughly 44% of kidneyfailures, the need for medical facilities offering dialysis willcontinue to grow. Typically, Patients require three dialysisprocedures per week – each procedure taking 3-4 hours. Though a bitmorbid, the reality is that dialysis centers can depend uponcustomers visiting frequently each week and an inelastic demand fortheir services.
The medical industry as a whole is poised for future growth andnet lease investors are only logical in recognizing the stabilitythis lends.
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