Stable Tenancy
On average, leases in medical office buildings are longer
than those in non-medical buildings. Average occupancy and
renewal rates are substantially higher as well. In addition,
physicians have a lower default rate than non-medical businesses.
Average Lease Length
Average Occupancy Rate
Avg. Renewal Rates
Healthcare Properties
8 years
90%
90%
Traditional Commercial
4 years
70%
60%
Attractive Cash Flow
Triple net leases are the industry standard in medical buildings.
Tenants absorb more costs, increasing the bottom line.
Impressive Appreciation Rates
Medical office buildings have impressive appreciation figures.
Since 2004, the average price per foot has increased 28%.
A Booming Market
As the Baby Boomers average age increases, so does the demand for
healthcare services. Over the next 15 years, 77 million Americans
will reach retirement age, creating an increased demand for medical
services and in turn for medical office space. A $2.5 billion asset
class, it has experienced over 200% growth in the last four years.
Recession-Proof Investing
There will always be a demand for healthcare services, regardless of
the economic conditions. For this reason, medical properties are less
likely to suffer extreme fluctuations in value than traditional
commercial and multi-family properties during economic downturns.