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A successful health care real estate strategy requires research and trusted partners

Facing constant reductions in payor reimbursement rates, regional and community health care systems actively seek ways to improve margins and enhance their effectiveness. To achieve this, hospitals are thinking lean: less cost, fewer employees and less cumbersome processes.  At the same time, health care providers are working toward enhancing the overall patient experience, ease of access, meaningful outcomes and greater market share. With this perspective in mind, an increasing number of health systems are expanding their footprint and geographic reach utilizing creative ambulatory strategies that increasingly focus on deploying the right facilities in strategic locations. In the current competitive health care landscape, many of the larger players have found that smaller, more efficient facilities located closer to the populations they are looking to serve that incorporate a branded appearance and programmatic design will quickly build brand awareness with the consumer and provide speed to market resulting in increased market share.  Whether it is an offensive or defensive play, this tactic has proven successful in the retail world, and it translates very well to the delivery of health care.  However, research and trustworthy [...]

2025-04-04T16:59:30+00:00April 4th, 2025|News|0 Comments

Thought Leaders: Top 5 Investment Trends in Healthcare Real Estate

By Jeff Behm, Senior Vice President of Investments at Bremner Healthcare Real Estate Over the last several years, healthcare real estate has arguably been the preferred asset class for real estate investors. As a broker and advisor for health systems and investors, I’ve observed several trends that are shaping the industry’s trajectory. 1. Investment sales volume expected to increase in 2025 After record-low activity in 2023, investment sale volume increased slightly in 2024 as interest rate and cap rates stabilized, with core plus and value add profiles being the most active. As investors diversify away from the less-favored sectors like traditional office, many have pursued healthcare real estate opportunities given its population and demographic tailwinds and less-cyclical nature. This also holds true for foreign investors. This influx of investment capital, combined with pricing stability, should serve to reduce the bid-ask gap and allow for meaningful price discovery and increase transaction volume in 2025. 2. Cap rates are converging among product types After significant expansion in 2022 and 2023, cap rate volatility moderated in 2024. According to CBRE, the average MOB cap rate [...]

2025-04-04T15:00:24+00:00April 4th, 2025|News|0 Comments
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