Market Trends Going Into 2025
As we look ahead to 2025, the healthcare real estate market is brimming with optimism, primarily fueled by lower interest rates that are driving valuations to new heights! This positive trend not only enhances the potential for lucrative investments but also signals a robust acquisition activity surge, presenting exciting opportunities for investors.
Lower Interest Rates = Higher Valuations
The Federal Reserve cut interest rates twice this year, now down 75 bps, with analysts predicting the Fed will continue to reduce its benchmark rate by a quarter point at each of its next three meetings.
Acquisition Activity is up
According to Revista, private investors, funds, and PE-back groups are net buyers in 2024 adding $2.4 billion of MOBs, on a net basis, to their portfolios
Commercial lending is up
Lending during Q3 was up nearly 50% from Q2. Healthcare properties led the way, with new mortgage originations up over 500% from 2023.
Succession Planning
Physician-led and physician-owned practice groups, ASCs, and Specialty Hospitals look for opportunities to address growth and succession planning through its real estate, including tax-efficient structures, continued physician ownership, and a reduced buy-in for incoming physicians.
Let us help you navigate these opportunities.
As a leading advisor to physicians, owners, and developers of medical real estate throughout the U.S., HREA is here to help you maximize and realize all your objectives.
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