Industry Focus: Healthcare Real Estate
Rapid changes in the healthcare system are affecting many aspects of the industry – including how medical practices are making real estate decisions. Two major trends are affecting how healthcare providers are reevaluating the real estate options available. And now it’s more important than ever for medical practices to work with a real estate broker who thoroughly understands the site, entitlement, technology and other needs unique to healthcare tenants.
Healthcare Trend: Consolidation
Consolidation of health systems is happening across the country with large systems absorbing smaller ones. Additionally, many private practice physicians are joining large systems due to their ability to more cost-effectively and efficiently adhere to changes mandated by the Affordable Care Act. With these major shifts in the industry, owners of medical office space are now leasing larger spaces – 25,000 square feet or more – and seeing very little movement in current tenants.
Healthcare Trend: Community-based Care
Where people are going for medical care is also changing. There is a push toward more community-based health management – essentially locating medical facilities based on the population’s needs and availability of resources to meet them. This means large systems are locating offices convenient to its’ patient population so post-discharge care is easy for the patient, in turn lowering readmission rates that are costly for the care provider. Real estate companies are seeing an increase demand for medical office space in rural or suburban markets. Existing medical office tenants are also choosing to renovate rather than relocate to meet changes in technology or other industry advances.
McWhirter Realty Partners continues to follow healthcare trends and understands the context, challenges and opportunities faced by medical practices in this market. Plus, we have a strong history of working with healthcare systems and knowledge of medical office space availability and requirements throughout the metro Atlanta are. We understand the intricacies of site selection and entitlements to effectively guide decisions. If you have questions about healthcare real estate in the Atlanta area contact us today.
McWhirter Realty Partners focuses on brokerage, property management and development services with expertise in healthcare, industrial, self-storage, office, retail and land sales throughout the United States. The company consistently ranks as a Top Ten Producer as recognized by the Atlanta Commercial Board of REALTORS. McWhirter Realty Partners is located at 300 Galleria Parkway, Suite 300, Atlanta, Georgia 30339. www.mcwrealty.com