The COVID-19 pandemic has affected the economy and health care operations in many ways. To stop the spread of the coronavirus, many people sought out health care through telehealth solutions. However, now that vaccination rates are rising and restrictions have been lifted, the demand for in-person health care is growing again.
The health care commercial real estate market is growing relative to other markets. The pricing of health care and medical properties is now at a premium compared to suburban offices, according to Real Capital Analytics.
Commercial real estate is a complex world. Specialty real estate can be even more complex. It's important to understand both the current fundamentals of the market and projections for the future. When deciding how to invest in current health care and medical properties for sale in El Paso, Texas, it's crucial to know as much as possible about the market.
Modern technology has improved our health care in many ways. There are more treatments available, and they're more effective. The fertility rate is declining, and the life expectancy rate is increasing, which results in an aging population. The Census Bureau projects that the number of Americans aged 65 and older will reach 80 million in 2040.
Older Americans will need more medical care – and health care providers will need office spaces to provide that care. Investors understand this fact and have marked out health care and medical properties for sale in El Paso, Texas and other areas as a desirable option. Ultimately, the aging population has increased the need for health care office space.
There's also an ongoing trend towards providing health care outside of hospitals. There are several factors driving this change.
Sometimes, health care provided at a location other than a hospital comes at a lower cost. According to Lisa Gillespie's June 4th, 2021 article in Modern Healthcare, the innovations in medical technology allow for less invasive procedures. That means there's less of a need for the extra resources a hospital provides. Procedures can be safely conducted in a space outside the hospital – which means they're cheaper than a procedure inside a hospital.
An additional factor driving the demand for health care and medical properties in El Paso, Texas is convenience. Retail locations are more convenient than making the commute to a distant hospital. Saving time is a key motivation in today's busy world. Reinforcing this is the fact that sometimes patients do not care who their provider is. They would rather go to a convenient location than drive to the hospital for a specific physician.
The result of these preferences is that retail clinics are growing at a double-digit pace – which is adding to the growth of the health care and medical properties for lease market.
Outside of the hospital, there are many other settings where providers offer health care. One of those settings is an ambulatory surgical center (ASC).
ASCs are health care facilities that provide same-day surgical outpatient care. These centers allow patients to be discharged within 23 hours of care, which reduces the risk of infection and allows recovery to take place in the comfort of home.
Market research predicts that the ASC market will experience an annual growth rate of 6% between 2018 and 2023. With the growing demand for ASCs, it's clear this is an area of commercial real estate that will provide strong ROI.
ASCs are just one example of how the commercial real estate market for health care and medical properties is expanding. This growing demand is a key factor in why investors are looking for health care and medical properties for sale in El Paso, Texas.
The demand for health care outside of the hospital is driven by a number of factors. In addition to an aging population and a desire for convenience, there is also a growing demand for elective procedures. More people choosing to have elective procedures also increases the need for health care and medical properties for lease in El Paso, Texas.
Major metro areas in the Southwest, Southeast, and California are attracting retirees, who make up the largest portion of people needing health care. But these aren't the only regions that will see a demand for more health care and medical properties. Around the country, the need for innovative health care spaces will grow.
As the economy recovers from the COVID-19 pandemic, more people will return to work and will again have access to health insurance. The demand for health care will rise, and the market for health care and medical properties for sale will rise, too.
If you are looking to buy, sell or lease health care and medical properties, MyEListing can help. MyEListing offers free services to search for available commercial real estate property.