When analyzing various trends in the real estate industry, it is easy to get lost in the focus of giant dealers in this industry, such as large commercial projects, residential projects, hospitality projects, and more. One of the most common real estate sectors that many analysts forget is the healthcare real estate.
This sector is unique and often results in unique trends that are important to track for you to have a complete picture of the entire industry. If you are into residential investments, you may want to check Movoto.com and other renown property listing websites. Here are the most significant trends in the healthcare industry that you must know.
Accelerated telehealth trailers
The CARES (Coronavirus Aid Relief and Economic Security) Act and other factors related to the COVID-19 pandemic have created a significant surge in the use of telehealth since March 2020. This doesn’t mean that on-site health care is irrelevant.
Indeed, the provision of virtual care will ultimately increase the need for healthcare real estate. This is because this technology will increase patient touchpoints with the entire healthcare system, resulting in follow-up live-health care appointments, especially after the coronavirus pandemic.
You should also anticipate an increased need for telehealth provision suites, with unique features like privacy for HIPAA complaints and internet redundancy.
Coronavirus pandemic will accelerate the segmentation of acute care and wellness locations
The overall demand for personalized and preventive care among two giant population cohorts, seniors and millennials, has been reshaping the healthcare real estate for years before the Coronavirus pandemic. However, after the pandemic, lifestyle integration and ease of access are likely to be more essential to these two groups.
Coronavirus pandemic is likely to be temporary, but its impact will definitely accelerate the lasting trend towards health care facility focusing on higher acuity in-patient care. Also, it is expected that preventive healthcare will take place in convenient locations, perhaps in the heart of various population centers.
Small healthcare facilities are merging with healthcare systems
Over the past few years, more effective healthcare systems have been merging with physician-owned facilities. In some cases, these individually-owned practices don’t have the tech and modern layouts required for the more extensive and more effective healthcare system.
Consequently, some already existing health care properties may not be absorbed by the larger systems. The good news is that there is still a push towards the expansion of the health system. This makes the medical office building industry a very desirable portion of the investors’ portfolios. New investors and the seasoned ones are likely to enjoy more benefits associated with their healthcare real estate investments.
The increased use of healthcare insurance and the ageing population across the United States has created an increasing demand for medical office buildings and medical practices. From potential investors seeking recession-resistant investment options to suburb residents looking for more localized healthcare, everyone is counting on the healthcare system. The healthcare crisis experienced in 2020 is positioning this industry for innovations and expansion of the entire healthcare real estate.
Rehab space increase
In recent times, there has been an increase in the rehabilitation rate as medical researchers find innovative ways to handle chronic illnesses and critical elements that need extended treatment. Keep in mind that a caveat of most rehabilitation facilities is that they need more space for a single patient compared to other healthcare facilities. In some cases, you may have to admit one patient per bed in a private room.
That means as an increasing number of rehabilitation patients continue to seek medical attention, more space is required. That means these facilities must rent more spacious buildings, and this is likely to drive the demand for real estate in the healthcare industry.
As mentioned earlier, most small healthcare facilities and merging with bigger ones. However, the concept of consolidation isn’t limited to just small pharmacies and clinics. This trend is being seen in massive hospitals.
If you wish to keep a keen eye on the healthcare industry, expect to see more hospitals merge various locations as the healthcare systems begin to grow and become more interdependent. This trend will be accelerated by the increasing government influence on various aspects of healthcare. Most governments incline the industry towards a higher level of consolidation.
The coronavirus pandemic and other forces affecting the healthcare industry, positively or negatively, are the key trends you must pay attention to. As an investor, you should be able to spot an investment or growth opportunity and take advantage of it. Just make sure you know the details of the Bluegreen timeshare cancellation policy in case you need to take a step back. The specific trends discussed in this article continue to drive the healthcare real estate now and in the future.