The swelling demand for healthcare services is undebatable. The age 65-and-older cohort will rise to just over 56
million by 2020, comprising 17% of the nation’s total population. This represents an annual growth rate of 3.5%,
which is approximately 14 times the rate of those aged 64 and younger.
As the senior age bracket grows, it will drive physician growth and subsequent need for medical office space.
Through 2019, expenditures on professional medical services is projected to grow 5.2% annually, compared to 4.3% historically. Those 65
and older will require more healthcare services, as this group visits doctors well above the rate of any other age group.
million by 2020, comprising 17% of the nation’s total population. This represents an annual growth rate of 3.5%,
which is approximately 14 times the rate of those aged 64 and younger.
As the senior age bracket grows, it will drive physician growth and subsequent need for medical office space.
Through 2019, expenditures on professional medical services is projected to grow 5.2% annually, compared to 4.3% historically. Those 65
and older will require more healthcare services, as this group visits doctors well above the rate of any other age group.
Given rising demand for healthcare services, current projections
estimate that just over 150,000 healthcare practitioners will be
added to the economy over the next two years.
The required space demanded by most practitioners ranges
from 1,000 square feet to 1,500 square feet, dependent on if they
are starting their own practice or adding additional practitioners
to their staff, per MedScape. Therefore, total demand for medical
office space across the U.S. could range from 150.5 million
square feet to 225.8 million square feet by 2019.
estimate that just over 150,000 healthcare practitioners will be
added to the economy over the next two years.
The required space demanded by most practitioners ranges
from 1,000 square feet to 1,500 square feet, dependent on if they
are starting their own practice or adding additional practitioners
to their staff, per MedScape. Therefore, total demand for medical
office space across the U.S. could range from 150.5 million
square feet to 225.8 million square feet by 2019.
There is an estimated 110 million square feet of available medical
office space in existing and under-construction buildings in the
U.S. as of the second quarter of 2018. If all healthcare practitioners
added to the economy through 2019 aim to locate within medical
office space, absorption of this demand is impossible.
More specifically, when drilling down to the top 10 most populous
metros and several other select markets, for most areas the
ability to handle this increased demand is unlikely – even at the
low end of the projected range – without a major shift in how
people expect and receive healthcare. New York, Dallas/Fort Worth,
Atlanta, Denver, and Miami/Fort Lauderdale would be the most
challenging for practitioners wishing to locate within medical
office space.
office space in existing and under-construction buildings in the
U.S. as of the second quarter of 2018. If all healthcare practitioners
added to the economy through 2019 aim to locate within medical
office space, absorption of this demand is impossible.
More specifically, when drilling down to the top 10 most populous
metros and several other select markets, for most areas the
ability to handle this increased demand is unlikely – even at the
low end of the projected range – without a major shift in how
people expect and receive healthcare. New York, Dallas/Fort Worth,
Atlanta, Denver, and Miami/Fort Lauderdale would be the most
challenging for practitioners wishing to locate within medical
office space.
However, medical practitioners could explore leasing space in
conventional office buildings, of which there is currently ample
space available, or accelerate the trend of repurposing empty
retail space for medical uses. In addition, the emergence of new
forms of healthcare, such as telemedicine, digital health, and
shared service centers, could suppress future demand to some
degree, depending on how quickly these new approaches are
adopted by the healthcare industry.
conventional office buildings, of which there is currently ample
space available, or accelerate the trend of repurposing empty
retail space for medical uses. In addition, the emergence of new
forms of healthcare, such as telemedicine, digital health, and
shared service centers, could suppress future demand to some
degree, depending on how quickly these new approaches are
adopted by the healthcare industry.
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