Some 73% of investors think demand for skilled nursing properties will either hold steady or increase over 2018, according to a national survey on healthcare markets released Monday.
That’s an improvement over 2018, when pessimistic investors responding to the CBRE U.S. Healthcare Capital Markets’ Healthcare Real Estate Investor & Developer Survey were split evenly over the idea of steady or shrinking demand.
The 2019 survey isn’t all good news for long-term care. Just 10% of investors put skilled nursing facilities on their most-wanted list for 2019.
Respondents primarily included private capital investors, healthcare real estate developers and healthcare REITS.
Across the board this year, CBRE expects sales volume to hold steady, “not due to a lack of demand but rather due to a lack of available product to purchase.”
“The demand by investors for healthcare real estate (overall) remains at an all-time high,” CBRE reported. “Investors continue to seek opportunities to allocate capital to healthcare real estate in an effort to take advantage of one of the strongest drivers of the economy.”
Of all categories, medical office buildings led as most coveted for acquisitions, with 94% of respondents saying they were “most interested” in such facilities. But senior-friendly investments also continue to influence investors, with assisted living (26%) and independent living (18% as part of a growing “other” category) assets likely to attract participating investors. Skilled nursing finished just above long-term acute care hospitals, which drew interest from only 7% of prospective buyers.