Medical Office Real Estate: A Net Lease on Life
While many real estate investments are loosing value, the medical office sector has shown remarkable resilience. According to a report from Marcus & Millichap Real Estate Investment Services, the segment is holding up much better than other property types and this trend projects to continue.
Currently the nation spends trillion on health care annually, by 2013 that number is projected to grow to trillion. In-fact, medical expenses have increased by an average of 7.7% over the past 10 years and now make up 17% of GDP. This exponential growth has been fueled by the large amount of baby-boomers who are steadily increasing in age and by 2013 the number of people over 55 will have increased by 20%. As more people advance in age, their medical expenses will rise correspondingly, fueling demand for the medical office segment.
Another driver of demand has been the shift from aan impatient to outpatient focusa. This has been caused by the steep rise in costs associated with hospital construction. A single hospital bed is now estimated to cost million, driving many new hospitals to house around only 100 beds compared to older hospitals featuring close to 800. This decrease in supply, coupled with an increase in demand from an aging populace, has created a large need for medical office space.
These trends are reflected in the industry's employment numbers. While the rate of job growth has decreased, job growth itself is still positive. 50,000 jobs have been added this year and another 200,000 are projected to be added by years end. By 2013, 2.4 millions jobs are projected to be added to the sector.
Despite these positive indicators, vacancy is projected to rise. This is due to the economic climate which is forcing many to abstain from health care expenditures they previously would have made. All told, vacancy is projected to increase by 100 bps this year, reaching 12.4% and rents will decrease by roughly 2.7%.
This increase in vacancy should be seen as a possible opportunity for those considering investment. Unlike other sectors, medical office real estate is virtually guaranteed to see a future rise in value as our population ages and health costs increase. Furthermore, if you couple a medical office investment with a net lease structure, you can create a passive investment that will see real growth in the future. This is perfect for someone who wishes to take a less active role in property management but still see his property value escalate. The combination of higher demand, less space and higher employment make medical office real estate an attractive net lease investment for the future.
Frequently Asked Questions
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QUESTION:
Is there hipp baby food available in Canada?
I tried to research but got nothing there are stores all over the world if there is hipp baby food available in canada please let me know-
ANSWER:
According to their website they don't have any stores that carry it in Canada, but you can order through the website.
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QUESTION:
whats better gerber baby food or Hipp babyood?
I just moved to the UK and was giving my baby Gerber in america they dont have it here but Hipp baby bottles just look cheap whats better ?-
ANSWER:
What's better is making your own! It's the cheapest! But yes, I keep Hipp for a backup sometimes. It's organic, though, and Annabel Karmel says that organic food doesn't always have as much iron as other baby foods.
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QUESTION:
Stage two baby food - Hipp, Organix, Heinz or other?
We use Organix for our 6 month old's cereal but we can't find any jarred food done by them so we use Hipp for the jarred food.I prefer Organix because I compared the first rice cereals and the Organix wholegrain rice cereal was so much nicer compared to the Hipp stage one rice cereal.
Which one do you prefer?
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ANSWER:
I used the hipp jars which my daughter loved, I am no cook and I made every recipe out of the annabel carmel cookbook but my daughter wouldnt touch any of it !!! I found the jars really convenient and you know that your baby is getting a balanced diet and dont have to worry about the salt etc. As soon as my daughter was able to eat lumpier food she started having whatever we have with no problems
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QUESTION:
Can you buy Hipp Organic food and Aptamil baby milk in Northern Ireland?
My little girl will only use these products and I am not sure whether to stock up before we leave or not!! Thank you for your help!
Sorry, I didn't mean to offend anyone by suggesting it was a 3rd world country or anything! Its a beautiful place which I've visited on many occassions, obvisouly my baby brain is in full mode asking such a daft question!!-
ANSWER:
yer course you can buy them in N ireland!Every shop they have in the uk they have in N ireland!
Boots, Asda, tesco etc.....
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QUESTION:
What other foods can I give my 6 month old son now he has started solids?
He has weetabix,fruit purees,veggies and chicken.Im using Hipp organic baby food at the mo as I dont know how thick the food I give him can be.I was told by my health visitor to give him toast but I worry about him choking as hes only been eating purred food.When and what can I start giving him to get him used to lumpier foods?-
ANSWER:
I am feeding my 7 mo. old organic carrots, green beans, broccoli, squash, sweet potato's, bananas. I am trying to stay away from the cereals as much as possible, based on some peer-reviewed articles I have read about creating an unnatural craving for things like that (carbs) that causes obesity later in life - whether or not this is going to be proven in the future is hard to say, but it is what I am doing.
You can start to steam your own veggies and blend them less and less so they aren't as purreed. And you can mash bananas up so they are chunky.
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