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3 Ways Medical Real Estate is Different From the Rest

The healthcare industry is booming and being driven by large demographic shifts now more than ever. More than 1/3 of Americans are now over the age of 50, and that number is not only growing but is expected to grow well into the future.

So, what does that mean for the healthcare industry? Simply put, it means that healthcare services will be in an even greater need than ever before. Demographics drive dollars. The healthcare industry is now the nation’s largest employer, and healthcare spending is projected to spike by about $2 trillion over the next decade. With such demand and rapid growth, it was inevitable that healthcare providers would need to seek out new and exciting real estate opportunities.

Hospitals and healthcare systems have opened their horizons and recognized the need to go beyond traditional downtown medical/hospital campuses. Healthcare real estate is evolving and appearing in new spaces. Medical commercial real estate is an active new segment, with medical office buildings now making up nearly 40% of all healthcare real estate assets. However, there are a few key differences between medical commercial real estate and traditional commercial real estate tenants.


This comes into play when talking about commercial real estate settings. While some medical commercial real estate practitioners thrive as stand-alone, healthcare tenants among more traditional commercial real estate concepts tend to benefit when positioned as part of a larger array of retail stores or other healthcare options. Places in these locations can create larger regional and more national networks that are available to patients.


Since medical commercial real estate is rapidly growing, it is an extremely stable industry. The healthcare industry is also recession-resistant. They are likely to still be standing long after other businesses around them like restaurants and retail stores have failed. This makes healthcare real estate an attractive investment for any practitioner thinking about investing in their practice.

Amenities and Priorities

Things such as demographics, accessibility, visibility, and signage are all important items to consider. Generous parking is another key amenity. Of course, the pros and cons of all real estate options should be considered. Retail locations come with great visibility but traditional offices can be specifically designed and built for the unique healthcare provider.

Ultimately, in such a diverse and rapidly expanding market, understanding the various different options available is a key component. Healthcare real estate requires specialized knowledge and experience that is vastly different from a conventional commercial office. At HFS, we work with our healthcare clients in a collaborative manner, delivering comprehensive and value-based solutions that span the entire life cycle of a real estate asset.

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