The Connect Healthcare Real Estate Conference, held in Newport Beach, California on September 28, 2023, brought together industry thought leaders and professionals to discuss the latest trends and challenges in healthcare real estate. The Healthcare Real Estate team at Sheppard Mullin was privileged to attend the event and gained valuable insights that resonate with their commitment to advancing healthcare real estate solutions.
One of the key takeaways from the conference is the growing demand for healthcare real estate. Despite challenges such as rising costs, labor shortages, and capital constraints, healthcare real estate continues to shine as a top-performing asset class. The desire for accessible care and enhanced amenities fuels this demand, with experts projecting a substantial 25% growth in outpatient care in the next five years. This emphasizes the importance of strategic location decisions to meet the evolving needs of communities.
Another significant highlight from the conference was the impact of artificial intelligence (AI) on healthcare real estate. Placer.ai, a company specializing in geolocation data, presented intriguing insights into how healthcare tenants in retail centers can not only improve patient accessibility but also boost foot traffic and revenue. This concept underscores the potential for AI in optimizing healthcare real estate, making it a focal point for future strategies.
The conference also addressed the challenges in securing capital due to high interest rates and limited availability. As interest rates are expected to remain elevated, the industry has seen the emergence of innovative financing solutions, such as “dequity.” This concept bridges the gap between debt and equity, providing landlords with a creative way to navigate the current financial landscape.
As a leading firm in healthcare real estate, Sheppard Mullin remains dedicated to finding innovative solutions for their clients. By leveraging and developing real estate assets, they contribute to elevating the patient care experience while ensuring sound business strategies. The conference not only provided valuable insights but also facilitated networking opportunities with esteemed industry leaders, fostering collaboration and knowledge exchange.
In the ever-evolving landscape of healthcare real estate, Sheppard Mullin’s commitment to excellence and innovation continues to drive their efforts. They look forward to embracing the key takeaways from the conference and applying them in their future endeavors, further enriching the healthcare real estate industry.
Frequently Asked Questions (FAQ)
1. What were the key takeaways from the Connect Healthcare Real Estate Conference?
The key takeaways from the conference include the growing demand for healthcare real estate, the impact of artificial intelligence on optimizing healthcare real estate, and the emergence of innovative financing solutions to navigate the current financial landscape.
2. Why is healthcare real estate considered a top-performing asset class?
Despite challenges such as rising costs, labor shortages, and capital constraints, healthcare real estate continues to be a top-performing asset class due to the desire for accessible care and enhanced amenities. The projected 25% growth in outpatient care in the next five years further supports its prominence.
3. How can AI optimize healthcare real estate?
AI can optimize healthcare real estate by improving patient accessibility and boosting foot traffic and revenue. By leveraging geolocation data, healthcare tenants in retail centers can strategically locate their facilities to maximize their impact on the community.
4. What is “dequity” in the context of healthcare real estate financing?
“Dequity” is an innovative financing solution that bridges the gap between debt and equity. It offers creative avenues for landlords to navigate the current financial landscape, especially in the face of high interest rates and limited capital availability.