National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Healthcare Sector Rebounds Faster Than Broader Economy: CBRE
While few industries have created as many jobs with such stability over the long term as healthcare, even the industry suffered job losses in the pandemic. However, CBRE reports that job losses in the sector were not as severe as in the broader economy—a 6.4% year-over-year decline as of the second quarter of 2020, compared to 11.2% for all industries—and has rebounded faster.
The drop in health care employment was partially caused by patients’ COVID-related reluctance to schedule routine visits and by government mandates limiting elective procedures. Following this decline, though, stable growth is expected over the next five years.
Medical office building sales fell by 12.7% in 2020, but are expected to see a strong rebound in demand this year once the COVID-19 virus recedes, CBRE says. “Investors are sensing good growth opportunities with pricing and sales transaction levels more resilient than for most property types,” the report states.
Although telehealth will clearly play a greater role in health care, its impact on medical offices likely will be “negligible,” according to CBRE.
- ◦Economy
