2024 has ended, which means that the opportunities of 2025 beckon! At GZ, we’ve been keeping a close eye on the medical real estate market, noting growth in overall patient demand, trending changes in specific lease terms, and the hot market to watch – including Washington, D.C., an area we know well!
Here are some of the medical real estate trends we’ve noticed this past year.
Outpatient Sites Are Having a Moment
Hospitals may be where the action is, but for day-to-day care, smaller outpatient sites can be more accessible, more efficient, and more cost-effective. When it comes to certain specialties – for example, outpatient surgery – as well as primary care and behavioral health, these smaller facilities are seeing soaring demand. By investing in outpatient sites, providers can reduce costs, while also reaching a wider pool of patients and taking the strain off hospital sites.
Specific Specialties Are Seeing a Surge in Demand
Changing patient demographics and the impact of COVID-19 have seen increasing patient demand for certain specialities, with Cardiologists (17%), Critical Care & Pulmonary Physicians (14%), and Urologists (14%) topping the list. Nurse practitioners and physician assistants are also in high demand, with demand growing 11%. The takeaway? With a growing gap between demand and availability, medical practices need to carefully consider their staffing balance. This is especially true for high-demand specialties or for providers in areas where staffing can be challenging, such as rural areas.
Medical Coworking Offers a New Way to Deliver Care
With independent physician numbers shrinking, medical coworking offers an alternative business model for medical professionals who want to avoid consolidation. Increasingly, medical professionals are hanging out their shingle at general coworking spaces – or even set up shop at spaces designed specifically for medical professionals. Coworking is a great way for behavioral health professionals, physical therapists, and other wellness practitioners to work from a private space convenient to their patient’s needs, and without the long-term lease and price tag of traditional medical office space.
Administrative Needs Have Shifted Offsite
Healthcare leasing activity remains below pre-pandemic levels, in large part because many administrative roles have shifted to remote or hybrid formats, especially with larger institutions. Those numbers are anticipated to hold steady, with 59% of medical group leaders not planning to adjust their hybrid or remote policies. This will allow providers to reduce or reclaim leased space.
Flexible and Adaptive Spaces are on Provider’s Wishlist
Costs are rising, and providers are carefully watching their bottom lines. Being able to maximize and/or reconfigure space to adapt to changing patient needs is increasingly important to healthcare providers. Modular spaces have become a boon, as they allow providers to quickly reshape a space without disruption to care – ensuring that every inch they’re paying for is being properly utilized.
Get on Trend with Your Next Lease – Talk to GZ!
Are you busy expanding your practice to monitor medical real estate trends? Talk to the medical real estate experts at GZ Realty. With decades of experience connecting medical practitioners with best-in-class properties, we can help you stay ahead of the trends – and help you move quickly to protect your market share along with your bottom line.