Going to the doctor can make some people feel uneasy. However, healthcare providers are an essential component to a long, healthy life. As more and more Americas are able to obtain health coverage, outpatient services are increasingly accessible. With that said, here are 4 reasons to consider a medical office building.
1. Healthcare Can Be a Resilient Industry
The healthcare real estate world has been revolutionized by technology that add convenience and comfort to everyday treatment. Healthcare is one of the few sectors that continues to see expanded growth and even though video conferencing has become a new normal, it will never be able to substitute for an in-person appointment with a doctor. A patient’s physical presence is required for any procedure or treatment outside of self-care such as diet and exercise.
Medical office buildings are relatively recession-proof. Even though consumers can cut back on online shopping or eating out, they can’t choose to ignore a broken leg or a cavity. The United States has more healthcare options today than ever before. This increases the need for convenient and easy-to-access locations.
2. Aging Baby Boomer Population
Healthcare is about to tout long-term value as the Baby Boomer population continues to age and the cost associated with that care continues to increase. This demand is not going away. The demographic of those born between 1946 and 1964 is 75 million strong, with more than 10,000 Boomers retiring each day. As this generation ages, the care required to maintain health and wellness will only grow. A potential increase in doctors that specialize in treatment of elderly conditions may drive demand for facilities outside of a traditional hospital setting and into facilities like medical office buildings.
3. Diversification
Medical office buildings are unique in that they may attract complementary tenants, thereby potentially enhancing the appeal of the entire asset for all involved. That includes the types of care patients receive. Many healthcare tenants are also affiliated with larger integrated health systems. A patient may be able to visit a doctor, specialist, and receive laboratory or digital imaging services all within the same location.
4. Medical Office Building Tenants Usually Maintain Strong Credit
Although every tenant is unique, medical office building tenants typically have strong credit. They also usually intend to be long-term tenants, with the idea of being situated near complementary services. For example, a physical therapist may like the idea of being next to a spa to attract even more of the same type of clientele to neighboring businesses. This benefits the consumer as well. Many medical office buildings are situated in convenient, one-stop-shop locations where providers are happy to cross-promote with neighbors who they don’t compete with.
A Healthy and Stable Market
All medical office buildings have their own unique complexities and risk factors that should be considered. However, an aging population combined with an increasing emphasis on wellness and preventative care outside of a hospital setting could potentially foster an ever-growing demand for quality healthcare providers. Location, tenant roster, and the physical real estate will be paramount when examining a healthcare property.