Vital Signs Good for Healthcare Real Estate

Nov 26, 2018 at 03:15 pm by admin


According to Cushman & Wakefield's 2018 Healthcare Investor and Developer Survey, there is a continued optimism for the healthcare sector as demonstrated by favorable yields and sizable medical office building rent growth in key U.S. cities.

Cushman & Wakefield surveyed a cross-section of healthcare developers and investors on their preferences related to geography and property type, in addition to project outcomes including cap rates and development yields.

The respondents included private equity, institutional owners and REITs, along with developers specializing in the healthcare sector. Some operate locally and regionally, while others have a national footprint.

The report delves into these four key takeaways and more:

  • Most respondents expect their portfolios to grow in size (SF) over the next year
  • The medical office property type continues to be highly favored
  • 75% of respondents indicated a willingness to invest in value-add and opportunistic assets
  • Development yields have been strong, ranging from 6%-8% on the high end with a credit anchor tenant

See the report at www.cushmanwakefield.com/en/research-and-insight/2018/vital-signs-nov2018

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