CREJ - Healthcare Properties - June 2016
It’s no secret the metro Denver region is one of the healthiest in the United States due largely to an active outdoor lifestyle. Consequently, that lifestyle, coupled with an aging population, is forcing health and wellness topics to the forefront of many discussions. The Metro Denver Economic Development Corp. estimates that by 2040 Colorado’s population age 65 and older will double to 1.5 million. This demographic shift, brought about by the aging baby boomer generation, will help numerous metro communities generate increased economic activity in order to meet the growing demand for both on-campus and off-campus health services. The health care industry will reflect the impact of population growth not only through additional locations and services but also by the upsurge in hiring of skilled workers. According to the Metro Denver EDC’s website, the health care and wellness cluster currently employs 202,550 workers at 19,450 companies in the metro Denver area. Since 2010, this cluster has increased an amazing 22.6 percent in employment growth compared to the still-robust growth nationally of 9.7 percent. In the past year alone, this cluster grew 5.5 percent locally compared to 2.9 percent nationally. With the average wage for health and wellness jobs in the metro Denver area at $55,790 per year, it’s apparent why this area is a hotbed for new health care development. Communities across metro Denver are devising various strategies to address the increased demands of this growing issue. The city of Thornton specifically, with over 130,000 people, is expanding in record numbers. The anticipated population at full city build-out is almost 250,000 people, all of whom will need affordable and convenient health care options. The “continuum of care” concept is one way Thornton is working to address this issue. Continuum of care is a system that guides patients, over time, through the variety of their health care concerns. Thornton is proud to be partnering with North Suburban Medical Center and HealthOne to establish a health care district. This district will surround the existing hospital at the southeast corner of Interstate 25 and Thornton Parkway. Overall, 30 acres of land currently owned by the city will be available for development as part of a 90-acre-total project area. The vision for this district is to become an area in which users will have access to diverse services such as assisted living, memory care, specialty medical offices and more. The demographics of the area surrounding the proposed health care district lend themselves strongly to health care development. North Suburban Medical Center projects that by 2019 total patient visits will increase by 10.7 percent, 55- to 64-year-old patient visits will grow 19.7 percent and patient visits by those 65 and over will surge a whopping 35.5 percent. The surrounding population has grown 3.53 percent annually since 2000 and the average household income sits at $81,204 per year. The health care district campus offers occupants high-visibility and easy access to both I-25 and the 136,000 cars traveling it past the area on a daily basis. Surrounding a well-established hospital owned by a premier health care group and having an estimated 123,191 people over the age of 50 living within a 5-mile radius, this site is ready for health care development. Because the 30 acres of available land in the district is owned by the city, the project will go out to a request for proposal in August in anticipation of having a developer(s) selected by the end of 2016. The continued revitalization of this area, along with the catalytic effect we believe this project will have on surrounding development, meets a key priority for the Thornton City Council. Additionally, the health care district is located in both a state enterprise zone as well as an urban renewal area, providing potential opportunities for city participation in infrastructure development for the right type of project. The health and wellness industry will continue to rise exponentially over the coming years and all the communities in the metro Denver area will be working to come up with ways to provide these much needed services to their residents. Thornton is very excited about the planned health care district and the potential opportunities it has to have a real impact on health care services in the years to come. Source: Metro Denver Economic Development Corp., Development Research Partners