By Arlees Jacobius | Pensions and Investments
Commercial real estate investing is preparing a shot in the arm as a result of the shift in delivery of health-care services from the Affordable Care Act.
The new law is turning health care into a growth sector that real estate investors cannot ignore, managers say. Starting next year, the law is expected to extend health-care services to 30 million to 50 million more people, greatly increasing demand for medical office space and medical facilities, as well as certain types of senior housing and care facilities.
Health care’s percentage of gross domestic product in the U.S. is expected to grow to 19.6% in 2021 from 17.8% now, according to a LaSalle Investment Management Inc. study quoting data from the Centers for Medicare and Medicaid Studies, part of the U.S. Department of Health & Human Services. The medical office sector continues to improve, with demand for buildings expected to exceed supply through 2014, LaSalle’s study noted. What’s more, medical office vacancy rates have been lower and more stable than the total office sector, averaging 10.3% between 2001 and 2012 compared with 14.4% for all offices over the same period, according to the study.
If you’d like to discuss real estate matters, contact Rose Law Group founder Jordan Rose, jrose@roselawgroup.com
If you’d like to discuss employment or health care law, contact David Weissman, dweissman@roselawgroup.com
