As a result of the changing patterns in healthcare usage, including the movement toward healthcare "consumerization," more providers are seeking new kinds of office environments in which to see patients, changing the demand in the healthcare real estate market, according to a report from Healthcare Finance News.
To cut spending and increase visibility, healthcare providers are increasingly setting up offices in freestanding and retail plaza spaces. In addition, large private hospitals are seeing more tenants — often private practices — subleasing space in an effort to reduce costs and increase patient volumes.
As for pricing of the aforementioned spacing? "We're starting to see the effects of more medical space coming to the market, and now we're seeing an uptick in rental rates. That's a good sign for hospitals that own property. It means ultimately they would be able to get more for their space from tenants," said President of national Healthcare Capital Markets Group and partner at Bull Realty, Paul Zeman, in the report.
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To cut spending and increase visibility, healthcare providers are increasingly setting up offices in freestanding and retail plaza spaces. In addition, large private hospitals are seeing more tenants — often private practices — subleasing space in an effort to reduce costs and increase patient volumes.
As for pricing of the aforementioned spacing? "We're starting to see the effects of more medical space coming to the market, and now we're seeing an uptick in rental rates. That's a good sign for hospitals that own property. It means ultimately they would be able to get more for their space from tenants," said President of national Healthcare Capital Markets Group and partner at Bull Realty, Paul Zeman, in the report.
More articles on transactions and valuation:
CNL Healthcare acquires Adventist Health ASC building
5 factors affecting viability of independent centers
7 recent ASC acquisitions