Medical commercial real estate is having the perfect storm. Baby boomers are entering their later years when more medical services are needed and Obamacare is moving into full force.
The double consequence is an unprecedented demand for more medical care. Along with the millions of baby boomer entering the years they will require the most health care, Obamacare is also increasing demand by between 30 to 50 million. If 60 million more people are accessing medical services, many more medical facilities are going to be needed. While the demand for medical markets is growing almost everywhere, you should first consider the strong demand in traditional retirement markets.
Strong Retirement Medical Markets
A study conducted by LaSalle Investment Management found that demand for medical buildings will exceed supply for years to come, the study further states that medical office vacancy rates have been lower and more stable than the overall U.S. office sector.
The U.S. has concentrated retirement communities in the south. Among the largest are Southern Florida, Arizona, and Southern California. Additionally, people that are able to move to better climates for retirement are the more affluent and tend to have medical coverage through retirement pensions. …read more