Healthcare Real Estate Q&A with CBRE’s Bryan Lewitt

By Dennis Kaiser

Connect Healthcare is planned next month in Scottsdale, AZ. We checked in with CBRE’s Bryan Lewitt, a panelist at the conference, to find out what trends are driving the healthcare real estate sector today. Here’s what Lewitt had to say in our latest 3 CRE Q&A.

Q: What are the big healthcare market trends you are tracking?

A: One of the largest trends we are experiencing in healthcare real estate is off-campus out-patient locations. In many situations, this can also be in retail settings. Healthcare is transitioning to retail because the healthcare provider can create a better patient experience.

Another trend is the demand for development of new independent and assisted living facilities. In Southern California, there is a shortage of high-end seniors housing facilities, which is being fueled by an increasing demand by the aging population.

Q: What are some examples of projects or deals that reflect what’s going on in the sector?

A:  One initiative is Hospital Corporation of America (HCA)’s roll-out of their urgent care strategy. HCA has been successful in other markets throughout the country by providing branded and high-quality urgent care locations to attract patients to their hospital. These locations are driven by science and data to optimize their investment in each location.

Another project we are working on is the Motion Picture Television Fund campus development. Motion Picture is divesting of 20 acres for a 300-unit CCRC for their community. There is a high demand for a buy-in continuum of care product. The ultimate plan is for the CCRC to compliment MPTF’s existing CCRC to assemble the two campuses into one complementary campus.

Q: What is expected to drive the success or adoption of these new types of facilities?

A: Since it is so costly for a location to fail, the providers must rely on better information when they choose a particular location and service offering. Therefore, CBRE has designed site location technology to assist our clients with their off-campus locations. The technology uses demographic and psychographic methodology to drill down to specific locations in a needed area. The end result is a substantial determinant of the success of that location, driven by patient demand, payor reimbursements, staffing costs as well as enhancement of the provider’s brand.

For comments, questions or concerns, please contact Dennis Kaiser