REAL ESTATE NEWS

SCOTTSDALE, AZ—At the GlobeSt. Healthcare conference, healthcare owners emphasized that the continued evolution of investor behavior—combined with limited asset supply—is reshaping the medical real estate landscape.

Panelists noted that some investor groups, including certain public REITs, have pulled back from the healthcare space. When asked about the impact, speakers pointed out that this retrenchment underscores an already supply-constrained asset class.

James Schmid, CIO at Anchor Health Properties, explained that development pipelines remain tight. “If there is only so much development product being added to the market, there are only so many assets to purchase,” he said, adding that health systems are increasingly unlikely to monetize assets.

Magliochetti added that while public REITs may be less aggressive, private capital has expanded its role. “Other investors have emerged in the sector,” he said. “Low transaction volume isn’t because of REIT pullback—it’s a lack of supply or sellers holding back.”

According to John Pollock, the last 18 months have been defined by seller hesitation. Many have been “unwilling to face the reality of the new environment,” he said. But that dynamic is shifting. “Now we are seeing people willing to take the loss, and there is private equity on the sidelines ready to transact.”

Developing in strong population-growth markets remains a key theme, Schmid noted, reflecting demand tied to expanding communities and needs-driven healthcare services.

Even as investors recalibrate, the panel agreed that buyer interest—especially from private equity—remains strong. The challenge now lies not in capital availability, but in finding assets amid historically limited supply.

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Source: GlobeSt/ALM