Speculation continues to be a big part of real estate deals. It goes even beyond waiting on rates to go down. Some investors and developers know to look at anticipated conditions for years down the road, especially when it comes to new construction or long-term conversion or renovation projects. Financial and population trends play a big role in target audiences, and research and “doing your homework” should play a bigger role in making determinations.
I’m seeing more developers looking into serving seniors than in past years. The fact that five years from now there will be 7,000,000 more U.S. citizens turning 65 gives reason for that. Meanwhile, updated research, per the below linked article, shows a more than 5% increase in the number of people expected to reach the age of 80. However, I’m seeing fewer developers and investors considering medical buildings. They don’t seem “glamorous”, but do attract more long-term leases.
Medical research shows that those over the age of 65 are more likely to have nearly twice as many doctor visits per year than the 45 to 64 age group. We could look at areas around the country where seniors are relocating to upon retirement or downsizing. Part of doing so typically means finding “new” doctors and medical facilities to work with.
An investor or developer can see where land or more easily available existing buildings may be available which could serve area seniors quite well. Chances are some medical practices or doctors seeking a better opportunity will be looking to take advantage of these situations.
We can see opportunities. The point is that this research is opening up these possibilities, without one property being considered. It shows the positive difference having a research person or team can make!
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