As an example from my previous post, of what is working now – medical real estate development is bucking the trend of the rest of the market.
Reports from around the country are showing that existing medical facilities are holding their values, have lower foreclosure rates, higher vacancies, and stable rents. Combine this with basic demographics data (i.e. aging baby boomers) along with the political push to expand medical coverage to all and the future demand for medical real estate development looks bright.
As a developer or real estate investor, now is a great time to get a clear picture of what medical real estate opportunities exist in your area. Steps to take include:
- Learn what facilities currently exist, and what is already in the development pipeline by talking with your local government agencies.
- Estimate if the supply of medical facilities will keep up with demand.
- Investigate which real estate zonings allow for different medical uses, and map out where these zonings are in relation to major medical facilities (hospitals) as well as senior living / assisted living facilities.
- Highlight potential properties that may already be zoned for medical or may easily be rezoned medical in these areas.
- Conduct some preliminary due diligence on these properties and create a buyer’s list.
These are some great initial steps that will help you quickly understand what real estate development potential there is in your area right now. Opportunities that you can take advantage of now, instead of waiting for when the rest of the market gets back on its feet.