Health Is Wealth: 5 Healthcare Real Estate Trends to Watch for in 2020

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When one looks at real estate trends, it’s easy to get lost in the focus of the big dealers in the real estate industry: hospitality, commercial office space, large-scale residential projects, and the like.

But one of the most important real estate industries that people often forget is healthcare real estate. The unique nature of the healthcare industry results in unique healthcare real estate trends that are nevertheless very important to track in order to have a complete picture of the entire field.

In this article, we’ll go over some of the biggest trends in healthcare real estate that you need to watch for in 2020.

1. Clinic-Pharmacy Integrations

The world’s filling up. There are no two ways about it. The population is bounding ever upwards, people are flocking to urban areas, cities are expanding, and land is becoming an ever-scarcer commodity.

The natural result of this is a consolidation of real estate wherever appropriate. That is precisely why the industry is currently seeing a lot of clinic-pharmacy integration sites pop up.

Take, for instance, Kroger’s quick care facilities or CVS’s minute clinic. Although these facilities do not provide comprehensive medical care, they can deal with many of the routine cases that are normally routed to a hospital.

2. Technology Usage

As the world grows more and more dependent on technology, the healthcare real estate industry also follows suit. The Internet is a much bigger part of real estate transactions than it ever was before. It can be used for everything from listing spaces for sale and rent to valuation. This year, you’ll see technology usage only increase.

3. Reduced Vacancy

One general trend that you’re seeing across the entire real estate industry is reduced vacancy rates, and that is yet true in the healthcare section of the field. Vacancy rates are at percentages so low that no one can remember the last time this happened.

4. Consolidation

As we discussed above, consolidation has become the name of the game. But consolidation isn’t just limited to small clinics and pharmacies. It’s also happening up in the upper echelons of massive hospitals.

Expect to see even more hospitals merge locations as systems begin to grow furthermore interdependent. This is especially true given the increasing government influence on healthcare, which in itself inclines the industry towards consolidation.

5. Rehab Space Increase

In the healthcare industry, rehabilitation rates are on the up as medical researches find new ways to deal with chronic ailments and critical illnesses that require extended treatment. What’s more, a caveat of rehabilitation facilities is that they typically require more space per patient than a hospital, which can make do with a bed in a private room.

Thus, the natural consequence is an upward trend in spaces purchased or rented for rehabilitation purposes.

Healthcare Real Estate Trends

There you have it — now you have a better handle on the healthcare real estate trends that you need to watch out for in the industry in 2020.

For more real estate advice, be sure to check out the rest of the articles on the website!

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