CREJ - Healthcare Properties - October 2017
As 2017 nears the finish line, the health care and senior property market remains one of Colorado’s strongest asset classes. The strength within Colorado’s market mirrors that of the national market, in which the aging U.S. population, pressure for health care providers to cut costs and new technologies have boosted demand for medical office properties, according to a report from CBRE. The report noted that the 65-plus population will nearly double between 2015 and 2055 to more than 92 million and comprise nearly 23 percent of the country’s total population – it’s a staggering number that prompts questions as to where this population will go, what will medical office buildings and senior facilities look like and even how medical care will be delivered in the future. While 2055 is still distant on the horizon, professionals within the health care sector already are looking at the various answers to these questions. In this issue, CBRE gives a market snapshot of metro Denver area’s medical office buildings in which vacancy has declined as lease rates, net absorption, construction levels and completions all have risen. While Denver’s vacancy rate ended the first half of 2017 with a 9.4 percent vacancy rate – above the national MOB average of 8 percent – the market has seen a 41.6 percent increase in absorption compared with the first half of 2016. The design of the medical office building of today, tomorrow and the future is a hot topic – as evidenced by the articles of a number of contributors to this issue. The authors discuss how technology, the changing (and no-so-changing) needs and wants of patients, and the influence of outside industries are shaping medical office buildings and health care. Consensus among all though is what always has been a keystone to successful development – listening to clients. Additionally, the issue includes a look at the senior housing and care market as well as a new feature – a by-the-numbers look at is what is happening within the industry. By the numbers gives a detailed look at Colorado’s senior housing past and present while articles cover topics such as successful operations in memory care, ways to attract millennials to the senior housing workforce and design trends within the industry. It’s a great issue to wrap up 2017 and look ahead to what 2018 will bring! Thank you for reading! Jennifer Hayes jhayes@crej.com 303-623-1148, Ext. 106