Healthcare needs grow as we age. Over 76 million people in the US are aging Baby Boomers.
Healthcare demand is less likely to fail even during a bad economy
Healthcare spending has been rapidly growing as a percentage of GDP, untouched by the “Amazon phenomenon”. In 2018, there were 26 million square feet of hospital and 12 million square feet of medical office buildings completed. This is expected to grow about 5% annually through 2025.
On the downside: medical buildings are highly-specialized, so when tenants leave, they may need expensive retrofits for re-leasing.