Q4 2023 Expected Slower Sales Amidst Rate Increases

Expected Slower Sales Amidst Rate Increases

Asset Class’ Long Term Strength in High Tenant Retention and Long Term Leases Support an Optimistic Future
It is no secret between inflation and the increased cost of capital, everything is more expensive. Investing in healthcare properties is no exception, but the alternative asset class is a long term investment. If the rent roll supports a long term horizon, refinancing in a couple of years as we all observe the capital markets is a strategy.
Lease rates have increased as material, labor and operating costs are all up specifically spikes in building insurance rates is affecting occupancy costs for tenants with triple net leases. Owners are affecting depending on how their operating expenses are structured.
Three of the most active metros made RevistaMed’s list for the past quarter.
Phoenix is still at the top market in demand for the fourth quarter of 2023.
RevistaMed’s quarterly webinar discussion underscores the current market’s lack of a price premium for selling properties as a portfolio. This means that individual medical and dental properties can achieve valuation rates similar to those of portfolios. For individual property owners in the Phoenix metro area, the market’s fundamentals are firmly in your favor. Capitalize on this thriving sector now.
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