The trend in medical services is moving to outpatient care. As healthcare organizations look to control costs and provide a better patient experience, the concept of delivering critical services under one roof is taking hold. Further increasing demand for outpatient medical facilities is the practice of medical providers expanding services to preventative care and mental health treatment programs. These components, combined with the fact that patients prefer convenience and would prefer not to go to a hospital, has fueled demand for large medical office buildings that are over 150,000 square feet in size.
According to a report by JLL, there are currently 44 medical office developments larger than 150,000 SF under construction in the U.S. This represents 11m SF and $5.3b worth of investment. With a growing population driving demand for outpatient services, the low supply of these new facilities, and the stability of the healthcare industry, medical office investments continue to show tremendous strength.
These large format buildings are capital intensive and can often be a daunting investment for the healthcare systems, especially considering staffing and equipment requirements. Therefore, investors will have increasing opportunities to participate in these developments as healthcare systems look to outside sources for funding build-to-suit medical office buildings.
Recentric continues to look for development and acquisition opportunities to meet the growing demand for larger, out-patient medical facilities. This strategy allows us to take advantage of the growing need for these facilities, and offer new and exciting opportunities to our current and future investors.