What’s Behind Medical Office Buildings’ Strong Trajectory

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One of the US’ fastest growing industries, healthcare spending reached almost $3.5 trillion annually in 2017.

The US Centers for Medicare & Medicaid Services anticipates national healthcare expenditures to grow to $5.7 trillion by 2026. With this growth, healthcare real estate, specifically medical office buildings, are poised for further success.

Medical Office Buildings

Medical office buildings comprise approximately 10% percent of the US office sector. These buildings are typically about 40,000 square feet and range from small physician offices to large healthcare systems. Investors are attracted to this asset class due to its stability and positive forecasts for a strong performance. On the rise for the last four years, medical office sales totaled $10.4 billion in 2018.

“Medical office buildings are so popular and are in demand as a renovation or as new construction,” says Jason Signor, CEO and partner of Caddis Healthcare Real Estate. “The market is phenomenal and occupancy levels and rental rates are healthy.”

It is well-known that the the aging US population is directly correlated with the rising demand for healthcare as doctor visits dramatically increase with age. Individuals 65 years and older spend five times more on healthcare than those who are younger. Yet, even with the favorable demographic and economic backdrop, new healthcare construction has not kept up with demand.

“With the continued shift from inpatient to outpatient care, new real estate strategies are being implemented which includes moving to urgent care centers, MOBs, micro-hospitals and health-system sponsored wellness centers,” says Signor. “ Outpatient care is booming and will continue to flourish in the future. The challenge, of course, is for our sector to keep up with the growing demand.”

Ambulatory Surgery Centers

Ambulatory surgery centers—healthcare facilities which offer patients the option of having procedures and surgeries performed outside of the hospital setting—have drastically reduced healthcare costs. According to the American Hospital Association, the number of ASCs and hospitals are almost equal with 5,534 hospitals and 5,532 surgery centers. While hospitals have declined by 5%, surgery centers have grown as much as 82% since 2000.

“ASCs will continue to dominate the healthcare real estate landscape,” says Signor. “We won’t see these large hospital campuses being built as much. As the campuses get older however, you will see more renovations as hospitals keep up with medical technological advances and stay abreast with ASCs.”

 

Source: GlobeSt.

Multiple New Developments In Dallas’ Medical District Proves Major Growth And Movement

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The Medical District’s population in Dallas is projected to grow by 12.5% from 2016 to 2021,

Olerio Homes’ launch of its first townhouse development at Kimsey Place in the distrct could’t come at a better time. The area is only minutes from downtown, area hospitals, universities, Love Field, the Park Cities and major highways.

Containing 28 units, the first of four phases of townhomes is now available for sale or lease. With sale prices ranging from the high $300s to the mid-$400s, this housing should be attractive to the medical and higher education personnel who work in the district.

Olerio Homes’ President, Lou Olerio, couldn’t be more satisfied with the company’s new venture.

“I had been looking for multi-family land for a while but didn’t want to develop in East Dallas or The Cedars due to the market saturation,” Olerio says. “I was excited to find a pocket off Maple and Inwood that offers affordability, location, and a developing neighborhood in need of more housing options. I feel like Kimsey was a perfect fit.”

With these homes’ affordability and convenience comes a rapidly developing neighborhood—one of the hottest real estate markets in the area. That’s not all. In the works is a Texas Trees Foundation project to make the area greener and more walkable which should increase property values for homeowners who get in on the ground floor of this new development.

With a job growth rate of nearly double the national figure that shows no sign of stopping, the Dallas-Fort Worth-Arlington area has become a magnet for job seekers all over the country. The state’s low tax rate continues to attract many of the nation’s top firms, with plans to relocate or establish branches in this growing region.

All that good news means that affordable housing will become scarcer as demand rises. To meet that need, Olerio Homes is pre-selling 24 patio homes in Modella Park, a gated development near Webb Chapel and Forrest. These homes will be available during the second quarter of 2020 and will be available at prices from the high $400s upwards.

“With the land rush on the east side of I-75, almost all land in the city’s east side had already been bought,” Olerio explains. “Since Olerio Homes bought the new land, there wasn’t much development on the west side of town. These new developments give buyers an option to own a home with as little as three percent down. Combined with the area’s potential for upside appreciation, this development’s central location and proximity to hospitals, universities, and businesses make buying a home there an attractive opportunity for first-time homeowners and new residents.”

 

Source: Tipp News Daily

Outpatient Clinics Market To Witness Huge Growth By 2025

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The Outpatient Clinics Market 2019 research provides a basic overview of the industry including definitions, classifications, applications and industry chain structure.

The market analysis is provided development trends, competitive landscape analysis, and key regions development status. This report also states import/export consumption, supply and demand Figures, cost, price, revenue and gross margins. The market is expected to grow at a CAGR of +XX% by 2019-2025.

Market Segment by Manufacturers, this report covers: M D Anderson Cancer Center, Kaiser Permanente Inc., Memorial Sloan Kettering, Mayo Clinic, DaVita Inc., University of Maryland Medical Center, Johns Hopkins Medicine, Cleveland Clinic and Fresenius Medical Care.

The overviews, SWOT analysis and strategies of each vendor in the Outpatient Clinics Market provide understanding about the market forces and how those can be exploited to create future opportunities. The report studies present as well as future aspects of the Market primarily based upon factors on which the companies participate in the market growth, key trends and segmentation analysis.

Key Questions Answered in Report:

  • — What is major factor which lead this market to next level?
  • — What will the market Demand and what will be Growth?
  • — What are the latest opportunities to Outpatient Clinics Market in future?
  • — What are the strengths of the key players?
  • — What are the key of Outpatient Clinics Market?

The report delivers a comprehensive overview of the crucial elements of the market and elements such as drivers, restraints, current trends of the past and present times, supervisory scenario, and technological growth. A thorough analysis of these elements has been accepted for defining the future growth prospects of the market. Based on the regions, the global market is segmented into five regions, namely North America (NA), Europe, Middle East and Africa (MEA), Asia-Pacific (APAC) and Latin America (LA). Presently, NA is the largest Outpatient Clinics Market.

Major Factors:

• Global Outpatient Clinics Market Overview
• Economic Impact on Industry
• Market Competition by Manufacturers
• Production, Revenue (Value) by Region
• Supply (Production), Consumption, Export, Import by Regions
• Production, Revenue (Value), Price Trend by Type
• Market Analysis by Application
• Manufacturing Cost Analysis
• Industrial Chain, Sourcing Strategy and Downstream Buyers
• Marketing Strategy Analysis, Distributors/Traders
• Market Effect Factors Analysis
• Global Outpatient Clinics Market Forecast

 

Click here to request a sample copy of the report.

 

Source: MarketExpert24