Commercial Real Estate News - Medical Office Space, Tax Law, Health Facilities - Alterra Real Estate Advisors LLC

Aging U.S. Population Will Drive Demand for Medical Office Space
Commercial real estate investors, take note. A CoStar analysis found that more than 200 million SF of medical office space—an increase of 16 percent—may be needed within 10 years as the population of aging Americans increases. People 65 and over average 6.6 medical office visits per year, compared with 2.5/year for the rest of us. The outlook for strong future demand for medical office space makes it a smart, defensive investment ahead of the next downturn.



The Tax Law and CRE Professionals
The tax law is renewing interest in tax deferral strategies, and the Society of Industrial and Office Realtors® (SIOR) has clarified the options for CRE professionals. They include tax incentives such as newly generous (100 percent) bonus depreciation on certain assets that can increase deductions, offset income, and reduce taxes. The former “improvement property” incentives for certain types of property are gone, except for the more limited Qualified Improvement Property (QIP). Legislation to restore those incentives is pending.



A Great Opportunity: Owner-Occupied Health Facilities
The commercial real estate market for healthcare facilities is growing as the US population increases and ages. We see the category of owner-occupied healthcare facilities as an excellent prospect for investment. Demand is increasing for these surgery centers, pharmacies, nursing homes, rehabilitation facilities, hospices, urgent care facilities, and small community hospitals. Ownership of your building offers many benefits, including stability and flexibility.


Above reprinted from Liberty SBF post 5/29/19