It’s no secret that 2023 might have recession talks growing louder but healthcare assets appear to be a safe investment with more and more eyes making their way to the sector. This is truly a time when healthcare real estate can shine since healthcare has historically been a recession proof asset. Healthcare can also use this time to capitalize on the consumer demand for convenience like never before. We’ve seen it before with scenarios like urgent care centers and how they seemed to be on every corner. This suggests that consumers are willing to get care and at times, very intimate and sensitive care with somebody they’ve never met before all because of how convenient clinics have become.
The pandemic’s disruption of the healthcare industry has opened new opportunities. This revolution created space for other types of innovative healthcare businesses too. What we’re seeing right now is a huge push in life sciences, and particularly in the femtech space. The demand for services like IVF and egg freezing for family planning has never been higher. Although virtual care emerged as an option a few years ago, high-tech experiences like this have to happen in a location and cannot occur virtually.
Convenience of healthcare is a key theme permeating through different aspects of the industry. A growing aging population also presents a huge opportunity for the healthcare sector to examine its real estate decisions and adds to demand for convenience. One must also keep in mind that senior citizens today are very different than ones gone by. They are not okay sitting at home and simply watching TV. Today, senior citizens are very active and if something hurts, they’re immediately headed to a physician to get it fixed so they can get back to their active lives. For all these reasons, the fundamentals of healthcare real estate look healthy heading into 2023.