Healthcare Industry and Real Estate Markets Overview
The delivery of healthcare services is real estate intensive – healthcare providers have an increasing dependency on real estate to maintain and grow their businesses.
CCP Reit believes that the healthcare real estate market provides investment opportunities due to the:
Favorable trends driving the demand for healthcare services
– Focus on outcomes and quality of care
– Increase in outpatient procedures
– Aging of the population
– Healthcare reform legislation
Dynamic healthcare landscape and the specialized nature of healthcare investing
– Consumer-driven healthcare decision making
– Technological and pharmacological advances
– Changing regulations specific to individual sectors
The Healthcare Real Estate Sector is:
– Under-penetrated sector with 7% of real estate owned by Public Healthcare REITs
– Senior housing market characterized predominantly by numerous local and regional operators
– Skilled nursing facilities – primarily a “mom and pop” business
– Top 10 operators own 14% of total beds
– REITs own 13% of total beds