Healthcare real estate has been outperforming nearly all other sectors of commercial real estate since the recession began, and investors are interested, according to a report in the Wall Street Journal.
The investors are banking on healthcare reform boosting medical office visits when more people receive insurance for the first time. Healthcare properties could be more recession-resistant than other office buildings, stores and hotels. In 2014, about $5 billion in medical office buildings were sold.
There was around 8 million square feet of new medical office building last year, which increased slightly from 2013 but was way down from 2008 when 26.5 million square feet were delivered. Senior living and assisted living facilities are especially popular.
However, investors that have been in the industry for a while caution there are risks to healthcare-related real estate since some accept Medicare and Medicaid patients that are "vulnerable to changes in federal reimbursement rates."