The healthcare industry is undergoing tremendous change right now. Naturally, so is the healthcare real estate sector. Everything from the way
space is used and designed, to where it’s located
or how it’s bought and sold, is in a state of flux.
Indeed the changes underway in the sector are
significant and the wrong move by a company
could mean the difference between thriving or
merely surviving. Policy changes in the government have had a seriously effect on certain asset
classes like skilled nursing, while other legislative
initiatives, such as the Affordable Care Act, have
given new life to medical office buildings.
Healthcare dynamics are also driving such
trends as the decline of hospital development and
the subsequent increase in outpatient facilities,
many of which are locating in retail settings to the
delight of the retail landlords. We are even seeing
situations in which the adaptive reuse of
retail space that has gone dark attracts a medical
At the same time, the size of the healthcare
economy cannot be overstated. Currently the sec-
tor accounts for 17.9% of US GDP, according to
JLL, and more growth is expected. Perhaps even
more significantly, healthcare employs an enor-
mous number of people. Today 12.2% of the
nation’s workforce is in healthcare and another
18% increase is expected over the next decade.
These increases in spending and workers will,
no doubt, usher in yet another stage in the evolu-
tion of the sector. As it does, you can be sure we
will be following the reactions of the influencers
on these pages, and those following in their steps.
REAL ESTATE FORUM PRESENTS...
H EALTH CAR E