Medical Office Buildings Buffered From Real Estate Slide
American Medical News reports: According to Real Capital Analytics, in May 3% of commercial office buildings were identified as being in bankruptcy, foreclosure or some other form of financial distress. This was true for only 1% of medical office buildings. Sales volume of medical buildings dipped 20% over the past year but plummeted 51% for other types of offices. A report issued by the New York-based firm in May concluded, "Medical office properties have proven to be a safe haven, and this niche has little trouble."
Interest in this usually staid sector is growing because there is a sense among investors that health spending is not being hit quite as hard as the rest of the economy in this downturn and many believe this sector will recover more quickly. Also, more medical procedures are moving to offices from hospitals, and demographic trends, such as the aging of the population, mean demand for health care will increase. Recovery is expected to be slower for retail and general office properties because investors expect it will take a while for consumers to start spending again.
View the full article on American Medical News: Medical Office Buildings Buffered From Real Estate Slide
Posted by: Mark Alferman