Report | Healthcare REITs Raise $22.5 Billion in 18 Months
Third party interest is booming in healthcare real estate, a property sector that has only marginal penetration by real estate investors in spite of the scale of sector. The estimated value of all healthcare real estate assets in the United States including all forms of healthcare real estate including hospitals, outpatient facilities and senior housing totals $700 billion, with public Real Estate Investment Trusts (REITs) holding approximately 15 percent of the product in the market. This investment includes medical office, hospitals, assisted living and skilled nursing. While REITs continue to aggressively acquire healthcare assets, a swell of new investors are maneuvering to purchase healthcare real estate.According to the Healthcare Capital Markets group at Jones Lang LaSalle, the surge in healthcare real estate appeal comes with good reason. The continued strong performance of healthcare real estate, specifically medical office buildings, which has propelled the market capitalization of public Healthcare Real Estate Investment Trust (HCREITS) to $50 billion as of June 30, 2011. Public healthcare REITs represent 12 percent of the entire REIT market capitalization and are the single largest property type after retail, office and industrial and residential property, which together along with healthcare comprise three-quarters of total REIT interest.
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