Medical Office Buildings Are In Higher Demand With Aging Population
As the American population ages, the demand for medical offices and medical office space rises. The Census Bureau predicts the 65 and older population will nearly double by 2055 to close to 23 percent of the country’s total population.
So what does this mean for commercial real estate agents? With an older population, more medical attention will be required resulting in more medical office space being needed.
Not only is the aging population increasing the demand for medical office space, but the advances in medical technology and equipment has the same effect. As technology develops, medical practitioners need more space and access to higher voltage. Both of those problems can be solved with larger medical offices. The goal is to minimize costs and maximize the outcomes of the work.
There has also been pressure on medical professionals to cut costs while still making advances with technology. This pressure has led to the increase in demand for medical spaces. Healthcare providers can’t continue to make advances in small, unreliable offices.
The overall U.S. medical office building vacancy rate was 8 percent in the first quarter of 2017. This can be attributed to the aging population as well as the number of insured individuals has increased over the years.
In the last ten years, the total investment of medical office space has increased immensely. This rise is key for commercial real estate agents because it provides an opportunity to increase revenue and show top of the line properties.
The older the population gets, the more medical services and office spaces needed will grow.