One place real estate investors are turning to for potential opportunities is medical buildings. With the need for healthcare a constant in the marketplace, medical office buildings have withstood the pandemic despite a move towards telemedicine.
“Medical office buildings emptied out during the pandemic when many patients opted for video appointments and telemedicine rather than in-person visits. That didn’t stop investors from pouring money into these properties,” a Wall Street Journal article noted. “Investors say there are a number of reasons to favor medical offices even as property owners turn more bearish on conventional office buildings, which have been upended by the new popularity of remote work.”
A Direxion Investments article on market predictions for 2021 lays out the case for DUSL and DRN:
“Among the more specific market calls coming from this contingent are those from UBS’s Keith Parker and Jefferies strategist Sean Darby, both of whom single out industrial stocks and industries with exposure to consumer cyclicals, which stand to benefit from strong relative growth over their performance through 2021,” the article said. “However, the two were split on other industries like utilities and materials, with Darby arguing that a cheaper U.S. dollar will support commodities and raise operating margins through 2021 while Parker predicts a stronger rotation toward growth, underweighting other value sectors like real estate and consumer staples.”