REAL ESTATE NEWS

SCOTTSDALE, AZ— The healthcare commercial real estate sector continues to generate strong opportunities despite a national landscape marked by economic uncertainty, according to John Chang, senior vice president at Marcus & Millichap, who delivered the opening keynote at the GlobeSt.com Healthcare Conference.

“There’s always something going on out there,” Chang said, pointing to global conflicts, immigration debates, Federal Reserve policy shifts, technological disruption, and tariff activity as core sources of volatility. Together, he noted, these variables have slowed national momentum and made performance highly uneven across markets. The Bay Area is lagging, many Midwest metros are experiencing slowdowns, and while some markets are stalling, others continue to outperform.

Job growth has softened nationally, with losses recorded in June and August. “We are still treading water,” Chang said, adding that job openings have declined and the country now faces a fragile employment environment. The U.S. needs to add about 200,000 jobs per month to maintain normalized unemployment levels, yet projections for upcoming months sit closer to 60,000–70,000.

Tariffs, meanwhile, have yet to meaningfully push inflation higher. Companies appear to be absorbing increased costs, though Chang cautioned that “the question is… will that shoe drop or will it not?” This lingering uncertainty has complicated the Fed’s rate-cut timing. As of now, markets anticipate a rate reduction in December, with additional cuts expected in 2026.

Although most economists no longer forecast a recession, GDP growth is expected to downshift beginning in 2026. “There will be a series of events that will shape policy in 2026,” Chang said.

Check back with GlobeSt.com for continued coverage from the Healthcare Conference.

Source: GlobeSt/ALM