Healthcare real estate is in high demand in 2020, as patients both get older and live longer. The healthcare industry faces pressure to provide quality, affordable care to an aging population. Healthcare real estate trends indicate that investors will flock towards medical facilities in 2020, especially since healthcare property returns have been progressively steady over time. 

2020 Healthcare Real Estate Insights

Medical Office Building Rent Upsurge

Medical office building trends reveal a steady upsurge for the next several years due to a major rise in healthcare spending. Healthcare spending reached almost $3.5 trillion annually in 2017 and is expected to grow to $5.7 trillion by 2026, causing medical office real estate to have high appeal for investors.

Micro-Hospitals

Small-scale inpatient facilities, or micro-hospitals, are becoming increasingly popular. More and more are emerging in suburban and urban markets as a backup to community facilities, or in underserved areas where the demand for full-sized hospitals is not high enough. Micro-hospitals can be as small as 17,000-square-feet, with enough room for eight patients at a time. They can provide patients with more personalized care and convenient accessibility.

Ambulatory Sector

Ambulatory care profits are expected to soar in the coming years because of the increasing demand for convenient healthcare services. The ambulatory market is expected to rise at an annual rate of 6% through 2023, greatly impacting medical office real estate trends. Rapidly increasing ambulatory care centers and outpatient facilities yield more medical offices.

Technology in Healthcare Real Estate

Technology remains a giant catalyst for growth in the healthcare industry, specifically in healthcare real estate. Healthcare Finance estimates that medical facilities will be developed at lower-cost sites connected to big data analytics, focusing on telemedicine centers, remote monitoring, electronic consults and more. Those looking for healthcare real estate opportunities will have to find operational efficiencies on their sites for inevitable technological changes.