Medical Real Estate
Medical Real Estate is a market segment in the wider Real Estate market. With that in mind, any commercial real estate space, including office space, buildings or campuses, leased to medical practitioners or organisations in the medical industry is referred to as medical real estate.
Also read: Things to Consider Before Buying Medical Real Estate
How Does Medical Real Estate Work?
In this market segment, real estate investors simply buy or develop, and/or manage, properties/buildings and lease them to members of the medical community looking for spaces to offer medical services to the public.
Given this arrangement, medical practitioners can focus all their attention on providing the best services to their clients/patients; by saving them from the demanding property development/acquisition and management duties. This ends up saving medical practitioners a lot of time and money/capital.
The Need For Medical Real Estate Is On The Rise
As medical organisations and service providers push to improve the patient experience, their operational efficiency, and boost their financial performance, the growing need for medical real estate is becoming more and more apparent.
Here are some of the reasons supporting this trend:
- Technological advancements in the medical field are increasingly making it possible for medical practitioners to offer more outpatient services. This means that more practitioners can move their services closer to the consumers/public.
- Population growth projections coupled with an aging population directly translates into growing demand for medical services in the coming years. And with it, the growing demand for more space for healthcare provides to see and treat patients
- Lastly, to provide more value to patients, medical organisations are looking to operate from strategic and convenient locations – the same approach taken by retailers.
Advantages Of Investing In A Medical Real Estate Property
While the real estate industry may not be as appealing to investors as it was in the past, there are many advantages of investing in the medical real estate niche:
- Medical Services Are A Necessity: Thanks to technological advancements in the medical field, more and more people are living longer. This, combined with the fact that medical services are a necessity, means that medical real estate owners can expect to earn rent from their tenants – medical practitioners – for longer, as the years go by.
- Medical Property Appreciates In Value: Even with the fluctuations experienced in the real estate market every now and then, medical real estate continues to gradually appreciate in value. This means that investors can still earn a great return on their investment if they decide to sell in the future.
For More Information On Medical Real Estate Contact Realforce Property Today
The medical real estate niche has a lot of potentials if current trends are anything to go by. To speak to a seasoned expert in the local market for investment properties in Albany, Western Australia, contact Realforce Property now.
Medical Real Estate Opportunity in Albany: Great Southern Health Precinct
FAQs
Medical centres are some of the most targeted commercial property assets, with investors attracted by stable tenancies and strong rental returns.
Here’s what you need to know.
Medical professionals, REITs (real estate investment trusts) and private investors can invest in medical real estate. REITs invest in the healthcare sector to generate consistent income for investors. Some medical professionals prefer to own their medical clinics to invest in medical real estate. Private investors can invest in medical real estate to diversify their portfolios.
It is risky to invest in medical real estate. Talking to an expert such as Realforce Property will help you make the right choices. The experts know what to look for, understand the current medical real estate market, have professional networks, and provide valuable price guidance
Failure in medical real estate investment is often due to investors not educating themselves first. They follow what other investors are doing or try to do the work themselves. Often investments in medical real estate are made in bad neighbourhoods. Educate yourself before investing in medical real estate and hire experts to help you make an educated decision.
You can either buy or lease medical real estate property. Suppose you plan to operate your medical practice for more than ten years. In that case, you can buy medical real estate property but consider your financial stability. Do proper research before you select a location for your medical practice.
Leasing medical real estate property can save you maintenance costs because the landlord maintains the property. However, you have to consider rental increases, a factor you can avoid when buying. Buying medical real estate also allows you to stay in the same place in the long run. Real estate owners can sell their medical real estate to other partners or physicians and yield equity.
When determining the location of a medical office, one has to consider your specific patient base. Traditional hospitals will have a different patient base than a private clinic.
Also, consider the community’s infrastructure and growth plans. For example, suppose a city plans to add more shops and public transportation. In that case, the higher foot traffic from these additions could increase your patient base.
As with any commercial real estate sector, some markets are stronger than others. Markets also fluctuate, so it is essential to conduct thorough market research before selecting a new site or building for a medical practice.
Once you decide to invest in medical real estate, it is better to talk to professionals. If you want to know more about medical real estate opportunities, speak to Realforce Property today.
