The Ever-Evolving World of Medical Real Estate
Are you looking to expand your portfolio in these uncertain times? Want to diversify out of the normal run-of-the-mill stock market ideas? Then medical real estate is the answer for you.
The medical field is one of the largest industries in the United States. And that trend isn’t going down anytime soon.
From leasing medical office space to expanding your commercial portfolio of properties, this field is growing. Read on to learn more about medical real estate and how the face of healthcare is moving out to the suburbs.
What Is Medical Real Estate?
Medical care is shifting from highly centralized giant hospitals to smaller off-site clinics. These smaller clinics are staffed by advanced medical specialists rather than medical doctors. They also are not required to take uninsured or Medicaid patients as their ER counterparts are compelled to do.
These two factors allow them to operate at a much lower overhead than hospitals. However, they still need somewhere to operate their businesses.
And more and more are choosing to lease their office space in retail centers close to where their consumers live and work. The medical real estate business is a growing sphere in the real estate world at large.
Is Medical Real Estate a Good Investment?
Many factors might play into your decision to dive into the medical real estate world. As you do your research in this area you will want to ask yourself a few key questions.
First, how long does medical real estate stay vacant? You don’t want to purchase too many properties and then not be able to fill them. In the US in 2019 the average medical office vacancy rate was 10.3%. Due to the high demand for more medical commercial properties by REITs, the pricing of these buildings remains strong.
Second, you should explore real estate brokers who lease medical office space. Regardless of if you are a medical professional looking to lease your office space, or if you are an investor looking for property to add to your portfolio, healthcare realty agents can help you.
When it comes to the overhead of any medical practice the property and their payroll are their highest expenses. To cut costs, many practitioners are choosing to lease smaller offices nearer their customers in a more retail environment.
This is leading to the need for highly trained real estate agents who specialize in the very specific needs of the medical community. As you explore medical real estate, be sure you are working with a professional who only works with medical commercial properties.
Taking Stock in Medicine
From dentists to mental health therapists to surgery centers medical care is becoming more and more accessible to their consumers. They are achieving this by locating their businesses in retail centers frequented by their patients. Hence these medical real estate properties are becoming valuable parts of many investors’ portfolios.
To read more on how you can expand your business or grow your portfolio, check out other articles on our blog.