As REITs pull back on acquisitions and focus more on refining their portfolios, private equity groups have more than taken up the slack. Total healthcare real estate transaction volume may have cooled ever so slightly – but not much – and so far this year, private investor buyers are making up 76% of that total. During 2017 they only represented 37% in comparison. At a recent Avison Young event, it was said that a high quality medical office building anchored by a strong healthcare system tenant can easily garner 75-100 interested buyers from all over the country – many of which are working alongside, or on behalf of, international funds. US healthcare real estate continues to be appealing to foreign pension funds, insurance companies and sovereign wealth funds for its long term stability, attractive yield and recession resistant nature. And it’s not only international, domestic funds that have historically focused on other sectors are showing interest in medical real estate as well as a way to diversify their portfolios. I can say from behind the scenes at Revista – the flow of inquiries from investors looking to increase their exposure or enter the market for the first time continues to increase and shows no sign of slowing. Are you exploring the medical real estate market? Register here to receive our newsletters or contact us for information on subscriptions.
