The medical or health sector has always been a flourishing one because people will always need medical services. The sector is so massive that it is one of the highest employers of the American workforce. Its stability is second to none and the recent pandemic serves as a reminder that society inevitably needs doctors and other medical practitioners to survive.
Also, thanks to the pandemic, there is an increase in the demand for healthcare practitioners all over the world and for those who look close enough, it presents a huge opportunity for investment. As the demand for health workers increase, so does the need for medical office buildings (MOB), and spaces. One study has predicted that demand for MOBs in the next 10 years will rise by up to 16% which is a steep climb. Click here to learn more about the features of MOBs that make them unique landmarks.
The opportunities that lie in this sector of the economy are numerous and should certainly be taken advantage of by people who would like to turn a profit while helping to save lives. Below are some reasons you should definitely get into medical real estate.
No matter how bad any economy gets, medical assistance and healthcare will always be in demand. What this means is that medical practitioners can be tagged as recession proof and will always make the payment date. For example, in the event that there’s a recession, consumers will naturally cut down on frivolous spending and unnecessary entertainment to save money; however, a broken leg or a jaw-breaking toothache still needs to be medically attended to.
With the COVID-19 pandemic that the world still battles with, one can say that this live-saving sector hasn’t been more stable and in demand. This is certainly one of the best times for investors to tap into this evergreen sector. With the growing demand for doctors and other health practitioners, there is a need for MOBs, and spaces for these professionals to deliver quality services. Visit https://www.who.int/health-topics/coronavirus to learn more about the Covid-19 virus.
Both the pandemic and rapid technological advancements have boosted things like telecommuting, teleconferencing, and a significant increase in online shopping among many other physical activities that have now been taken online. Despite all of these, in-person visits to hospitals and health centers still remain active.
Needless to say, many medical procedures require the presence of both doctor and patient to be carried out. The New York Times reveals that Americans today have more access to healthcare services than ever before. This fact alone drives the need for more easy-to-access MOBs and medical facilities.
The medical field is no doubt a broad and diversified one and investors who take advantage of this seem to have no regrets. Medical office buildings tend to house a wide variety of medical practitioners such as primary doctors, dentists, dermatologists, plastic surgeons, podiatrists, urgent care centers, laboratory services, ophthalmologists, and many more.
These types of tenants are generally considered high-income earners and not only do they earn enough to pay their bills, but their payments are also timely. These professionals certainly do not make their daily bread from one source as they are often affiliated with different hospitals and other healthcare facilities.
MOBs seem to take care of marketing for you since tenants that get many patients tend to attract complementary tenants as well, enhancing the overall appeal of the asset. Most times, medical practitioners working outside of a traditional hospital stay in close proximity to each other, especially when they do not consider the other competition.
It is usually a one-stop-shop where practitioners promote each other’s practice which benefits both consumers and fosters business growth. Investors stand to gain the most from this diversity.
Asset Value Appreciation
It is no news that medical real estate is often one of the choicest pieces of real estate. This is because they need to be easily accessible. As an investor, you may not have a problem obtaining these types of real estate when your intent is to provide spaces for society’s beloved professionals.
Also, hospitals and other healthcare facilities are catalysts for development. As mentioned earlier, they need to be accessible and so, even if you purchased a property somewhat distant from the city, the area will be forced to develop since healthcare must be accessed.
The importance and value placed on this sector influences the price of medical real estate in the best way possible. What this means for you as an investor is that you’re sure to get a bang for your buck should you decide to sell in the future.
Stable Cash Flow
There is a big increase in the number of senior citizens requiring healthcare. This, coupled with the fact that the cost of relocating a healthcare facility is both difficult and expensive means that tenants tend to be long-term clients that sign lengthy leases. This brings stable cash flow to investors who are always happy to renew leases with their big, paying tenants.
With more and more people taking a keen interest in their health and the growing number of senior citizens in need of healthcare, investing in this type of real estate has never been more profitable. Demand for medical office buildings is on the rise and practitioners are ready to pay for them.
Also, the supply of these buildings is way below demand which means that competition is relatively low. Entering the space now is timely and strategic and seems to be a wise investment move any way you look at it.