The healthcare industry is facing numerous challenges, from rising costs and labor shortages to capital constraints. However, despite these hurdles, healthcare real estate continues to be a top-performing asset class. This was one of the key takeaways from the recent Connect Healthcare Real Estate Conference held in Newport Beach, California. The conference brought together thought leaders and professionals in the industry, providing valuable insights into the future of healthcare real estate.
One of the main highlights of the conference was the discussion on meeting the growing demand for healthcare facilities. As the need for accessible care and enhanced amenities continues to rise, the demand for healthcare real estate remains strong. Experts at the conference projected a substantial 25% growth in outpatient care in the next five years, highlighting the importance of strategically locating medical facilities to meet the evolving needs of communities.
Another significant topic of discussion was the impact of artificial intelligence (AI) on healthcare real estate. Placer.ai, a leader in geolocation data, showcased how healthcare tenants in retail centers not only improve patient accessibility but also significantly boost foot traffic and revenue. This innovative use of AI emphasizes the potential for optimizing healthcare real estate and makes it a focal point for future strategies.
The conference also highlighted the emergence of creative financing solutions in the industry. With high interest rates and limited capital availability, deal velocity has declined in 2023. To navigate this challenging financial landscape, innovative financing solutions such as “dequity” have emerged. This concept bridges the gap between debt and equity, offering landlords a creative way to secure capital. Exploring these creative avenues is essential for supporting clients’ endeavors in a changing market.
As a leading healthcare real estate team, Sheppard Mullin remains dedicated to finding innovative solutions to address industry challenges. By leveraging and developing real estate assets, they contribute to improving the patient care experience while ensuring sound business strategies. The Connect Healthcare Real Estate Conference provided not only valuable insights but also networking opportunities with industry leaders, including developers, investors, brokers, and healthcare providers. Moving forward, Sheppard Mullin is committed to applying these key takeaways and embracing innovation to further enhance the healthcare real estate sector.
FAQ
What were the key takeaways from the Connect Healthcare Real Estate Conference?
– Health systems are facing challenges, but healthcare real estate remains a top-performing asset class.
– Outpatient care is projected to grow by 25% in the next five years, emphasizing the importance of strategic facility locations.
– AI has the potential to optimize healthcare real estate and improve patient accessibility.
– Creative financing solutions, such as “dequity,” are emerging to bridge the gap between debt and equity.
How does artificial intelligence (AI) impact healthcare real estate?
AI can improve patient accessibility in retail centers and significantly boost foot traffic and revenue for healthcare tenants. This highlights the potential for optimizing healthcare real estate using AI technologies.
What are some innovative financing solutions in healthcare real estate?
One emerging financing solution is “dequity,” which bridges the gap between debt and equity. This concept offers landlords a creative way to secure capital in a challenging financial landscape.
What is Sheppard Mullin’s approach to healthcare real estate?
Sheppard Mullin is committed to finding innovative solutions to address challenges in the healthcare real estate industry. By leveraging and developing real estate assets, they strive to improve the patient care experience and ensure sound business strategies. They also value networking with industry leaders to stay at the forefront of trends and developments.