Why You Should Consider Investing in Medical Office Space

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Medical office spaces are a focal point in commercial real estate investment, especially as public health needs have expanded during the pandemic. If you’re an investor looking to make serious ROI, then medical real estate may be right for you.

As one of the top medical real estate brokers in Phoenix, we have our fingers on the pulse of the medical office market. Medical properties are our specialty and we’ve helped hundreds of investors find one that meets their needs. Read our article below and learn why an investment in this area of real estate is the right choice.

Medical Office Spaces Benefit From Stability of Tenants

Doctors and dentists are higher-income professionals, which typically means they’re less likely to default on their leases — although you should vet them before you sign a contract. 

Investors benefit from their medical tenants’ longevity. Much like a retailer, many medical buildings serve as local resources to meet health needs. If a doctor or clinic builds a loyal client base in the area, they will likely remain a part of the property to maintain relationships with their patients. 

Medical Buildings Generally Perform Well Regardless of State Economy

No matter what is going on in the world, everyone requires medical assistance. While medical office spaces require specialized infrastructure and intensive management, practitioners are as close to recession-proof as possible. And especially with the COVID-19 pandemic, the demand for medical care is in high demand. This means you could likely have a steady cash flow — no matter what the economy looks like — by investing in a medical office space. 

Medical Office Market Is Continuously Growing

With advancements in technology, changing patient preferences, and an aging population, the demand for outpatient healthcare services is growing.  According to Equity Multiple, the number of outpatient centers across the U.S. increased 51% from 2005 to 2016. This can be attributed to the baby boomer population getting older and needing more medical assistance and a desire for more convenient, affordable healthcare.

To keep up with the demand for healthcare facilities, medical office spaces are being developed at a rapid pace across the United States — resulting in more opportunities for individuals to invest in medical real estate. 

Plaza Companies are Medical Real Estate Experts

Founded in 1982, Plaza Companies is a full-service real estate firm specializing in leasing, management, construction, and development of medical and commercial real estate across Arizona. We have been the trusted source for quality medical office space for countless clients since our humble beginnings. Contact us today to learn how Plaza Companies can assist you in finding the right property for your portfolio. 

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Whether you are looking to us for management, leasing or development services, we can help you find the perfect space. With almost 40 years of experience, you can trust Plaza Companies to assist you with your real estate needs.

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