Increasing Demand for Health Care Facilities as Population Ages — Commercial Real Estate Trends

commercial real estate trends

The legendary Baby Boomer generation is turning 65 at an increasingly rapid rate. Starting in January 2011, ten thousand Baby Boomers celebrate their 65th birthday every day! These birthday celebrations will continue for the next 15 years until 2030 when the last of the Boomers reach age 65.

While the Millennials are quickly catching up to surpass the Baby Boomers as the largest living generation, the 74.9 million aging population, between the ages of 51 and 69, will continue to have a great impact on society.

The aging population has resulted in a growing demand for a wide variety of health care facilities to provide quality care and access to elderly patients. The trend in the real estate market is toward building outpatient ambulatory care centers to provide everything from diagnosis to observation to treatment for rehabilitation. Modern Healthcare reports that ambulatory services account for 60 percent of all hospital revenues, compared to only 15 percent in the early 1990s.

Healthcare Design Magazine says that the outpatient center design follows similar commercial real estate trends in office design over the last decade – flexible spaces, new technologies, and fewer walls. More common spaces are created for group meetings for consultations with the patient and their families, and for smaller classroom settings for classes on topics like diabetes or weight control.

Manhattan leads the nation in new ambulatory care centers under development, with an estimated 3.3 million square feet in development. Washington DC also has a rapid growth rate with 1.9 million square feet according to Health Facilities Management.

A Hospital Without Beds is One of the Commercial Real Estate Trends for Healthcare Facilities

American Builders Quarterly recently profiled the latest design in ambulatory health care facilities. “The Hutch” is located in the Bronx, and is an 11 story, 278,000 square foot ambulatory care center on the Hutchinson Campus. It is part of the Montefiore Medical Center, and is known as the “hospital without beds.” The facility has 12 operating rooms, four procedure rooms and seven floors of medical specialties with high tech services.

The goal of the facility is to “keep people healthy and out of the hospital.” Montefiore promotes prevention in the delivery of care, which helps to keep overall health costs down. While some nearby medical institutions have closed their doors due to the recession, the “Hutch” has enabled Montefiore to remain fiscally healthy and integrate its failing hospitals into this new network. The “Hutch” reflects the changing landscape in the delivery of care as it streamlines operations and patient centered care.

We at Caldwell Commercial aim to remain abreast of up and coming commercial real estate trends while also staying committed to the values that have been ours from the beginning: customized services and optimized investments. To learn more about our properties or services, contact us today via email at info@caldwellcommercial.com.