Medical

A hospital campus is likely the first property type that comes to mind when someone says the phrase “healthcare real estate.” Hospital campuses create solid referral bases for medical practices. Facilities on a hospital campus allow patients to easily visit the specialists in those facilities after they have received hospital care. Likewise, patients visiting individual medical buildings are in proximity to the hospital in the event they need emergency surgery or extended care.

This is where medical real estate intersects with the traditional office sector. Some health systems lease or own commercial office properties. Their corporate teams work in these settings rather than within the walls of a clinic or hospital property. In some cases, these types of office spaces are more affordable, and tenants all share janitorial or maintenance services.

Medical office properties include anything from small doctors’ offices to healthcare systems. The facilities, usually about 40,000 square feet, make up 10% of office properties in the U.S. These spaces are usually dedicated to medical tenants, which can create opportunities for referral sources and opportunities for patients to see different physicians under the same roof.

As we’ve mentioned in a previous article, Drugstores, Clinics, and CRE, healthcare real estate has shifted more and more from the hospital setting over the years. More retail giants have opened healthcare services under their brand names. Walmart, Walgreens, and CVS are a few of the notable companies to offer new or unique health offerings. But these types of medical facilities are not the only representations of retail healthcare properties.

Medical groups sometimes purchase existing retail spaces. Shopping plazas or large malls offer foot traffic and more visibility to new patients. In 2019, one source suggested that ambulatory services were the most likely medical tenant to choose retail spaces. Other uses for retail space turned healthcare facility include physician offices, dentist offices, and outpatient care centers.