Medical Office Remains an Investor Darling, Post COVID-19
In spite of some hiccups last year, the outlook for both leasing and investment in the sector is as strong as ever.
Once again medical office assets have proven their resilience against recessions. According to a new CBRE report on medical office trends, investment sales of medical office properties experienced a moderate drop compared to most major property types last year as the pandemic gripped the United States. What’s more, investor appetite for medical office product appears to be growing in spite of a dip in healthcare employment in 2020. With a 50 percent drop in patient visits to medical office clinics in 2020, healthcare employment declined by 6.4 percent, according to Oxford Economics data. That was still significantly below an 11.2 percent decline in employment for the broader economy.