If you run a commercial real estate business, you may be always on the lookout for new opportunities. You likely already have a few niche areas that you focus on. However, finding a new way to bring in some income is always great. You may want to consider buying a facility for medical practices. Leasing space to medical businesses is an almost surefire way to earn a return.
Factors Increasing the Need for Medical Space
The big reason that purchasing a medical facility is a moneymaker is that there is a huge need for medical service providers. They are successful and consistent businesses. So, you can expect many of your tenants to stay onsite for a long time. Better yet, they are local businesses, so they are unlikely to want to move. These are a few of the factors creating such a high need:
- Retiring Boomers: The baby boomer generation is retiring and many of them are getting onto Medicare. Every day, 10,000 boomers reach age 65 and that will continue for another decade. While this rate may slow slightly when Generation X reaches retirement age, the reality is that there are more people than ever, and they all need healthcare.
- Affordable Care Act: Whether you love it or hate it, the affordable care act has brought healthcare to a greater number of people. Most importantly, people with insurance seek routine and preventative healthcare more, the type of healthcare provided by your tenants. That means more dollars going to the businesses in your building and more going to you.
- More Specialty Practices: Many procedures were once only performed in hospitals. However, more specialty practices are arising. That means you can have high-value practices as tenants without needing to have a full, hospital facility. Renting space to small, specialized practices is an almost guaranteed money maker.
Finding the Right Location
As mentioned, medical businesses are a type of local business. They want to be conveniently accessible to their customers and easy to find. So, offering the right location is the key to attracting great tenants. Often, finding space near hospital campuses is the best option. Practitioners prefer to be near major facilities. Additionally, you may even score the hospital health system as a client.
For these reasons and more, having a medical office as an investment property is a great way to earn a return. Learn more about buying your next commercial real estate investment today.
