- JLL released its 2022 real estate trends summary. It noted that hybrid work is now a “non-negotiable component of the new social contract that employees seek.” It also noted the cautious tone of many real estate investors due to higher interest rates and a softening economy.
- Colorado’s fast-paced life sciences growth has created a huge demand for real estate. Per ColoradoBiz, life science companies are searching for about 1.2 million square feet of space in a market that has just 87,000 square feet available. However, BizNow recently reported that life sciences startups are decreasing their space demands on a national basis due to the recent economic slowdown.
- According to Senior Housing News, the senior living sector faces a potential disparity of outcomes for 2023, with some operators building on 2022 success, while struggling operators may continue to flounder. In its 2023 trends piece, the publication also noted that competitors may be stepping in to ease the fraught relationship between senior living providers and third-party referral services, with the largest being “A Place for Mom.” These services match families with facilities for loved ones based on their desired criteria, with partner operators paying a fee for the referral service.
- Skilled Nursing News published its forecast of top skilled nursing trends for 2023. While the report noted the continued challenges posed by the economy and staffing shortages, it also noted that Medicaid reimbursements are set to increase in a number of states, and consolidation among regional players may create economies of scale that will boost the sector.
- Becker’s published a roundup of over 100 hospital and health system projects costing $100 million or more in 2022, including 20 with a price tag north of $1 billion.
- On the social determinants front, St. John’s Health in Jackson, WY recently voted to purchase two apartments for housing its hospital workers, with a budget not to exceed $1.3 million.
- Sheppard Pratt is planning to build a children’s hospital on its Towson, MD campus that would be “a national model for youth mental health.” The behavioral health system is asking the state to contribute $100 million over eight years, and MD Gov. Larry Hogan has agreed.
- A City Council Member in Evanston, IL (a suburb of Chicago) has proposed creating a task force to explore establishing a payment in lieu of tax (PILOT) program to force the city’s largest nonprofits, including universities and hospitals, to pay into a fund to support local government services.
- Centura broke ground on a $151 million expansion at St. Anthony North Hospital in Westminster, CO. The project was fully funded by sponsor CommonSpirit Health. The new, five-story building on the hospital campus will include a cancer center, medical-surgical unit, intensive care unit and space for an additional 60 medical-surgical beds.
- Hennepin Healthcare will soon break ground on a major overhaul of its downtown Minneapolis campus which is expected to cost nearly $100 million, including a new EMS dispatch and training facility and a hospital tower.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
