Economist Imparts Positive Outlook For The Economy, Healthcare And Healthcare Real Estate

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Unlike other past economic crises, the current one is quite different in that it is dominated by a pandemic hindering both the supply side and the demand side of the economy simultaneously.

This double-edged sword has, at least so far, been preventing what has often been a typical road to recovery out of recessions: rising consumer confidence and spending throughout various aspects of the economy.

This time, however, the COVID-19 pandemic has shut down “certain parts of the economy” not only once, but a second time, and “on the demand side it has created a disincentive for people to go out and engage in the economy,” said Ryan Severino, chief economist for Jones Lang LaSalle Inc.

“Not that I thought people were jumping back in wholeheartedly (after a slight relapse in pandemic in mid-2020), but at the margin it made people think twice about going out to a bar or to a restaurant or getting on an airplane, staying at a hotel, things like that, said Severino. “So, undoubtedly, the pandemic, which is the source of this problem, started to create more of a headwind for the economic recovery as the pandemic started to accelerate again.”

 

Source: HREI

Colorado Credit Union Branch To Be Converted To Medical Office

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Avison Young has brokered the sale of an 8,000-square-foot office property located at 8331 Continental Divide in Littleton.

8331 Continental Divide, Littleton, Colorado (PHOTO CREDIT: Avison Young)

The property was formerly a Colorado Credit Union branch and headquarters and will be transformed into a pediatric medical office. The property sold for an undisclosed price.

Avison Young Principal Rick Egitto, CCIM along with Justin Rayburn, principal with Fountainhead Commercial Properties, represented the seller, Colorado Credit Union. The buyer, Continental Divide Holdings, LLC was represented by Dann Burke and Stephani Gaskins with CBRE Healthcare Real Estate Brokerage Services.

“The buyer plans to execute a renovation of the property for use as its pediatric practice,” said Egitto. “We are seeing the Denver market being driven by the strong demand for medical office space and expect that trend to continue over the next 12 to 18 months.”

The broker team used its collective network to bring the opportunity to the market and secured a buyer for the property days before the listing went public. The quick sale enabled the seller, Colorado Credit Union, to consolidate its operations at its new Denver headquarters building on San Juan Way. It will also provide a reputable local pediatric practice to expand operations to a new office in the Denver metro.

“Rick and Justin’s targeted strategy to identify a local owner/user buyer allowed for a short due diligence period. This aligned with our business goals to rapidly monetize this real estate asset and capture valuable equity to invest back into our business,” said Mike Williams, CEO with Colorado Credit Union.

 

Source: Mile High CRE

Healthcare Real Estate Execs Foresee A Big Year For Medical Office Buildings

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For the past several years, professionals involved in the medical office building (MOB) sector have been saying that, aside from an economic downturn or total transformation of the healthcare system, there is just one thing that could slow the growth and success of the product type: a black swan event.

Well, from a business and economic perspective, the COVID-19 pandemic is the very definition of a black swan: an extremely rare, unanticipated event that caused widespread and catastrophic economic damage.

However, not only has the MOB product type survived seemingly unscathed, but it has thrived and even become a more desirable investment property type among an ever-growing pool of capital sources.

“As we’ve now seen going through a … few black swan events, I mean, these are resilient asset classes,” said Christopher Merrill, chairman and CEO of Chicago-based Harrison Street, a real estate investment firm he co-founded in 2005 and which has more than $32 billion of assets under management, with a strong focus on healthcare.

 

Source: HREI