The shift to outpatient care is driving investment opportunities
- Kari Beets
Outpatient visits are growing at a faster rate than inpatient admissions, driven by advances in technology, changes in reimbursement, and consumer preference for convenience. Outpatient growth is driving demand for space in Medical Office Buildings, as practitioners need space close to healthcare consumers. While Medical Office occupancy did tick downward during the pandemic the decline was not as long or deep, especially compared to that of traditional office occupancy, and it has since recovered to 92.3% nationally, according to Revista’s top 100 markets.
Advances in medical technology have also benefitted Ambulatory Surgical Centers, where procedures such as joint and ligament replacements have been simplified so they can be performed in outpatient facilities, Medical Office Building or stand-alone site.
The growth in changing sites of care provide opportunities for investors. In JLL’s Healthcare Investor Survey, 66% of respondents said that MOBs were the biggest investment opportunity and 41% expected annual rent growth higher than 3%. ASCs were viewed as the second biggest investment opportunity.
To learn more about key findings in our healthcare research, download our 2023 Healthcare Investor Survey & Trends Outlook.