Rising demand for health care services from aging Boomers will drive growth in medically-related real estate over the next decade, according to a Grubb & Ellis study. The report forecasts that medical properties will out-perform all other categories of commercial real estate in the years ahead:

“Medical office space is already outpacing traditional office space as
measured by asking rental rates. From 2000 to 2007, asking rental rates for
medical office space grew an average of 2.8 percent per year on average,
while rents for traditional office product grew an average of 1.3 percent,
according to Grubb & Ellis.

“The growing demand for medical services has kept healthcare
construction booming. Norcross, Ga.-based Reed Construction Data reports
that monthly spending on healthcare construction is 20 percent higher than
a year ago.”

The study notes a recent trend away from use of hospital beds in favor of outpatient services, and strong venture capital flows into the health care industry. Download the full report here.

This entry was posted on Sunday, April 6th, 2008 at 10:24 pm and is filed under Economy, Health Care, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.