The healthcare industry has experienced disruptions such as on-demand access to care, technology, and more choices for patients. Despite commercial real estate challenges that started during the pandemic, the medical real estate sector remains one of the most resilient for investors.
Moderated by Lynetta Tipton Steed, Central Florida Market President for Valley National Bank, our April program panel shared insight on the commercial real estate opportunities and challenges facing each of their organizations.
“Medical space demand is rising and outperforms non-medical space,” said Lisa Barrett,
Director of Real Estate & Property Management at AdventHealth. “We can essentially build ‘anything, anywhere,’ but this also increases competition to get there first.”
AdventHealth is planning over $2.4 billion in projects, including free-standing emergency departments, new bed towers, and new hospitals.
Chris Dunlop, Associate Principal at HuntonBrady Architects, stated that an evolving healthcare market would require changing project delivery strategies and a focus on site availability.
“Healthcare systems will consistently look for new sites to bring services closer to consumers outside their present service areas,” Chris said.
In addition to a movement toward outpatient delivery, Chris shared other trends we can expect to see, including an increased focus on caring for caregivers, expanded patient and family amenities, new behavioral health facilities, more rehabilitation centers, and bolstered partnerships with developers.
John Trickey, Vice President and Healthcare Division Manager at Brasfield & Gorrie, outlined the three most significant marketplace conditions as it relates to construction, including escalation, supply chain, and labor shortages.
The increased demand for all medical service locations, including urgent care sites, means that construction contractors and owners must coordinate early and focus on the ‘win/win’ before beginning construction.
“We anticipate seeing price stabilization and some improvements in material delays,” John stated. “Still, it will be critical for owners and construction contractors to prepare in-job contractual projections, outline contingencies and agreement structures, and determine known commodities in subcontracts.”
Check out photo highlights from the program on our
Flickr.
Special thanks to our April program sponsor:
Valley National Bank.
Save the date for our next lunch program, Capitalizing on Sustainable Development, set for
May 17.