Avison Young releases Topical Report“Evolution of Health Care and its Impact on the Real Estate Landscape in the United States”
The healthcare real estate landscape in the United States has experienced significant transformations in the past couple of decades.
Nationwide, more and more services are being untethered from the hospital setting and established on an outpatient basis closer to where people live and shop in the form of urgent care centers, ambulatory surgery centers and retail clinics, while the medical office building (MOB) – once housing discrete medical practices – is seeing a radical transformative change that likens it to a hospital without beds.
These changes and their key drivers are reviewed within a historical context in Avison Young’s Topical Report:“Evolution of Health Care and its Impact on the Real Estate Landscape in the United States”,releasedtoday.
Today, health care providers are adopting increasingly entrepreneurial real estate strategies. Technology and a consumer-driven market are propelling the much-needed changes in the health care industry, which is burdened with high costs, diminished reimbursements, and high demand from an aging population. With or without the repeal of the Accountable Care Act (ACA), the transformations to the real estate landscape continue as the key drivers of change remain.
“What we’re witnessing is a deployment of health care services in many types of locations as the industry, on one hand, strives to cover population health and, on the other hand, competes for market share in a consumer-driven environment,” comments Tula Voutieros, author of the report and senior research analyst in Avison Young’s Fairfield/Westchester office. “Looking into the future, a new culture of wellness instead of illness has the potential to drive the industry to a whole new level with American consumers.”
Avison Young Principal Sean McDonnell, who isbased in Avison Young’s Fairfield/Westchester office and who contributed to the report, says these trends are best exemplified in the region by the pace of the repurposing of older properties into wellness and urgent care centers, typically in the 10,000 to 20,000-square-foot range.
McDonnell notes: “The main drivers for the changesthat we see in today’s real estate landscapeare convenience, accessibility, visibility, and lower cost for more demanding patients, as well as for providers who seek to reduce costs by increasing efficiency and reducing duplicative services.”
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,600 real estate professionals in 84 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial, multi-family and hospitality properties.’’
