Medical office real estate remains in healthy financial state

As we've reported previously, medical real estate has kept its feet financially despite serious troubles for the rest of the commercial and residential real estate market. This continues to be the case as the recession gradually eases, according to observers and analysts, that healthcare is less sensitive to general economic conditions than the rest of the real estate world.

According to New York-based research firm Real Capital Analytics, medical office space is the sector with the smallest amount of troubled assets--1 percent, or nearly $200 million--compared to $18 billion for the traditional office sector, reports the Atlanta Journal-Constitution.

As anyone in the healthcare sector can tell you, healthcare real estate demand is far more consistent than in other sector, since it is largely finance by government and private insurance payors with more stable balance sheets.

To be sure, the medical office market has peaked. For example, in Atlanta there's less than 200,000 square feet of medical space under construction at midyear, compared with nearly 800,000 for the same period a year ago, AJC reports. However, demand for such space remains higher than other forms of commercial real estate by far, brokers say.

To learn more about the status of medical real estate:
- read this Atlanta Journal-Constitution piece

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