According to industry reports, new completions will fall short by about 1 million square feet compared to the 10-year average of 11 million square feet. This supply decline is likely to boost demand and pricing, though effects will vary by market.
On the surface, although the more than $1 trillion in Medicaid cuts might spell trouble for healthcare real estate, the sector isn’t sounding the alarm. While owners and investors are treading carefully—paying closer attention to tenants’ financials—they remain largely confident in the sector’s resilience.
According to Colliers’ Q2 healthcare services report, patients are increasingly accessing care in outpatient settings as hospitals focus on more complex and higher-revenue services in inpatient settings.
Receive newly posted industry news and information delivered right to your email inbox!
