Majority surveyed by the Newmark Grubb Knight Frank Global Healthcare Services Team in conjunction with the Building Owners and Managers Association, said their hospital was seeking to own more medical office buildings, with outpatient surgery and health and wellness listed as top targets.
CLEVELAND -- Experts say 2015 is only going to get busier for healthcare real estate deals, according to a new survey by the Newmark Grubb Knight Frank Global Healthcare Services Team in conjunction with the Building Owners and Managers Association.
The survey was released at its Cleveland conference on Wednesday.
The report found 80 percent of those surveyed said their hospital was seeking to own more medical office buildings, with outpatient surgery and health and wellness listed by 73 percent as the real estate in need of development. Meanwhile, 64 percent listed medical office buildings and urgent care as necessary developments.
The survey also found 46 percent said they would partner with other health systems to grow market share. Another 27 percent said they would acquire systems to increase market share, followed by 18 percent who said they would renovate existing facilities.
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There were 95 hospital transactions in 2014, compared to 98 in 2013, according to Kaufman Hall management consultants.
During the next year, 44 percent of those surveyed said they expected to develop off-campus, hospital-affiliated medical buildings. This compared to 6 percent who said they were considering acute care hospitals. Urgent care was the number one medical office specialty listed.
The number one region for new acquisitions or development is the Southeast at 25 percent, followed by the Southwest at 21 percent, and the West at 22 percent. The Pacific Northwest and Northeast came in lowest at 9 and 13 percent, respectively.
Healthcare accounts for about 17.6 percent of the overall U.S. gross domestic product, a figure expected to rise to 19.9 percent by 2022, according to the 2015 Healthcare Real Estate Survey Results from BOMA. This is largely due to an aging demographic, as an estimated 10,000 Baby Boomers turn 65 years old every day.