Steady Pulse
for Medical Office
Even with an ailing
economy, this product
type remains a sound
long-term investment
Stricter capital requirements and an ailing economy have
created a tough environment for real estate investment,
and transaction volumes are down across all property
types. One segment, however, that has held up comparatively
well is medical office. The healthcare niche’s strong underlying
fundamentals have continued to attract a host of investors
looking for a stable vehicle. And with sustained demand
expected for healthcare services, experts anticipate the sector
to remain a perennial favorite.
“Healthcare is an inelastic service. People get sick regardless of economic environments,” says Jason Dodd, president of
the Cirrus Group, a developer and investor based in Dallas.
“The credit crisis certainly makes transactions harder to complete, but the overall business model of healthcare has been
unaffected.”
Indeed, the volume of medical office sales has slipped compared to the previous year, but deals are still getting done. For
