Demand for U.S. Health-Care Facilities Continues to Show Strong Growth

Monday, June 5, 2017 General News
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DALLAS, June 5, 2017 /PRNewswire/ -- Demand for health-care facilities continues to show resilience across the country and

is expected to remain one of the strongest sectors in commercial real estate in the foreseeable future, according to BBG, a leading independent national commercial real estate valuation, advisory and assessment firm.

Growing investor demand for

these properties is primarily driven by expectations of rising health-care costs and that more facilities will be needed to handle an increasing number of elderly Americans requiring some type of patient care in senior residential housing and nursing care centers. Demand for health-care real estate would also include medical office buildings, laboratories and other types of health-care facilities.

According to research firm Waterbury Research, the number of older Americans is expected to grow at twice the rate of the overall U.S. population in the coming years. The Congressional Budget Office statistics confirmed this trend: by 2050, one-fifth of nation's population will be age 65 or older, 12 percent more than in 1980 and 8 percent more than in 1950. If these predictions come, it will become a top priority to provide enough of these health-care facilities for this age group.

Health Real Estate Investment Trusts have reaped solid investor returns and are considered to have attractive long-term potential because of the anticipated strong demand for these facilities. According to one industry report, health-care properties showed a one percent increase in April, outpacing other CRE sectors.

The current environment has raised the question of whether health-care providers should own or lease facilities or pick a third-party developer for that purpose. Given today's market conditions, there have been indications that providers are looking to own these properties.

Chris Roach, CEO of BBG, commented: "We are seeing vibrant demand for properties in the health-care sector and we expect this trend will continue to move in this direction, as this asset class will benefit from an urgent need to provide health-care facilities that will accommodate an aging population in the years ahead."    

ABOUT BBG

BBG is a leading independent national commercial real-estate valuation, advisory and assessment firm headquartered in Dallas with more than 22 offices in key U.S. markets. BBG has achieved a reputation for personal attention, on-time delivery and deep expertise in multi-family, office, retail and industrial sectors. For more information about BBG, please visit www.bbgres.com.

Media ContactMarc WeinsteinAscent Communications908 967-9958ascent1957@verizon.net

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/demand-for-us-health-care-facilities-continues-to-show-strong-growth-300468307.html

SOURCE BBG



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