Factors influencing investors to build medical practices in the CRE
building, also known as MOB, is a well-known concept in commercial real estate. It has a growing demand in the market. Investors feel more comfortable investing in this space.
Long term employment
Doctors' offices renting commercial properties are particularly beneficial to owners as they tend to stay for the long term. Medical practices are known for their healthcare service to people. So it takes a long time if there is no major problem on the horizon. The number of doctor's office vacancies is consistently lower in CRE than in other sectors.
Increasing demand from investors
Due to long-term leases and other facilities, investors are more interested in investing in this particular area. This makes the market for medical offices that rent more competitive. In addition, MOB has shown resistance in a variety of ways. the office stays longer in the rented apartment. Many companies cannot fight the problem that the MOB can.
healthcare needs
With population growth and advances in medical science, people need more medical care than ever before. Therefore, the demand for commercial real estate is increasing year by year. From 2005 to 2016, the number of medical centers increased by more than 50%. Moreover, the trend isn't slowing down anytime soon.
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