Medical Office Buildings Still Healthy
Florida Investor | By: Kenneth A. Weston
Despite the effects of the economic downturn in other sectors of commercial real estate, many medical office buildings in South Florida continue to do well. There are many factors driving the demand for medical office space.
The healthcare industry remains one of the few growing segments of the U.S. economy. As a result of the growth of the baby boomer population, there is an increased demand for more medical facilities ranging from physician’s offices, ambulatory surgical centers, diagnostic centers and specialty treatment centers.
Another driving force for medical office space has been the shift of medical care from an inpatient to an outpatient focus. Growth in the off-campus sector is fueled by consumer demand for more medical services to be located closer to residential neighborhoods.
In addition, as a result of the sagging economy, many doctors are delaying their retirement. Some have seen their portfolio drop by as much as 50% in the stock market.