Home > Uncategorized > Medical keeps good health despite economy

Medical keeps good health despite economy

September 16, 2010 Leave a comment Go to comments

Medical building investments in North Texas and around the country have jumped this year as investors take advantage of the rising market.Buyers ranging from large public real estate investment trusts to individual investors have purchased DFW medical properties.

Building developers and brokers say improving credit availability and growing employment in the medical sector are fueling these transactions.

“The health care sector is not completely insulated but is very resilient,” said Chris Godfrey of Dallas-based Cirrus Group LLC. “Well-positioned health care properties are going to do pretty well to weather the economic storm.

Attractive financing rates and a current lack of interest in traditional commercial office building investments are among the reasons real estate investment trusts are increasing their medical building purchases, said David Aubuchon, a senior securities analyst with Robert W. Baird & Co.

“Medical office demand and supply fundamentals are in decent shape now and should improve,” he said.

Investment property broker Marcus & Millichap Real Estate is also forecasting an increase in demand for medical buildings over the next few years.

Health care employment has grown by more than 765,000 jobs since 2008 and is expected to add 4 million more positions over the next decade, Marcus & Millichap forecasts.

Developers of small medical buildings are also seeing an increase in transactions.

Realty Capital Corp. builds medical offices that are bought by doctors and investors.

“The good news is we have seen both building sales and leasing pick up this year as compared to 2009,” said Rian Maguire of Realty Capital. “It is a buyer’s market given that there is still more supply than there is demand, and therefore, prices are still depressed as compared to a couple of years ago.”

from The Dallas Morning News

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Categories: Uncategorized
  1. Kate Reid
    September 26, 2010 at 11:41 pm

    Thanks for the info

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