When it comes to healthcare and real estate, the future is reshaped by trends that are as exciting as they are complex. The 2024 outlook is full of promise for this industry, but it also poses unique challenges that call for innovative thinking and creative approaches from all stakeholders.
A Changing Health Landscape
America’s aging population is the primary driver of demand for medical office buildings and freestanding ambulatory care facilities. As people reach retirement age, they visit the doctor 10 times more than those in their twenties and thirties. This increase in visits is driving a need for new healthcare spaces, like suburban medical office complexes that can accommodate both physician offices and outpatient services.
As these changes continue to unfold, healthcare providers and investors are developing creative strategies to address the evolving demands of consumers in the new era of retail-oriented healthcare. Advances in telemedicine have made it possible for people to conduct doctor visits and other healthcare-related transactions online from the comfort of their home or office, which is helping to streamline processes and cut costs while increasing convenience for patients.
This is an increasingly important trend in a sector that will need to balance consumer demands for access and affordability with growing pressures from the federal government to rein in healthcare spending. As the outlook for other commercial real estate sectors remains challenging amid inflation and a rising interest rate environment, healthcare assets are attracting investment capital due to their stable and consistent fundamentals and recession-resistant returns. healthcare and real estate