Weekly Health Care Real Estate Briefing: JLL Releases 2023 Investor Survey and Trends Report | Moffitt Cancer Center Breaks Ground on 775-Acre Cancer Development in FL | HCRE Advisor Podcast Features 1Konnection’s Yoni Kirschner

JLL’s Valuation Advisory group released its 2023 Healthcare Investor Survey and Trends Outlook. Among the report’s highlights: Cap rates have risen 50 bps and are likely to continue upward until the middle of 2023; medical office occupancy has ticked back up since 2020, making MOBs the largest investment opportunity in 2023; and the shift to outpatient care will continue to drive ASC demand.
In the latest episode of the Health Care Real Estate Advisor Podcast, Andrew Dick sits down with Yoni Kirschner, the founder of 1Konnection, to talk about his role in building an online marketplace for health care real estate buyers and sellers.
Moffitt Cancer Center held a groundbreaking for its massive new campus in Pasco County, FL. The development spans 775 acres in west central Florida and will feature 1.4 million sf of space among 140 buildings, including clinics, housing, and research facilities. The initial phase of the project is expected to cost $1.6 billion, approximately $1 billion of which will come from private sector investment.
The Center for Health Design recently released its “Staff Wellbeing Toolbox,” which contains a number of whitepapers aimed at mitigating clinician burnout and enhancing clinician focus by better leveraging health care real estate design.
The Washington Business Journal highlighted DC-area health provider efforts to expand their real estate footprints into more suburban areas, following the more scattered geographic footprint of workers in the hybrid-work era. Providers who have recently opened new outpatient facilities in the DC suburbs include Inova Health System, UVA Health, Adventist HealthCare, Kaiser Permanente and VHC Health.
To meet the demand for behavioral health services, Lehigh Valley (PA) Health Network has entered a joint venture arrangement with Universal Health Services to build a new 144-bed, 97,000 sf behavioral health hospital in eastern Pennsylvania.
Skagit Regional Health (WA) is seeking a local property tax levy to help fund health care services. Skagit Regional is the county’s largest health care provider. If approved by voters, this will be the first property tax levy the hospital has requested, although other public hospitals in the county, including PeaceHealth and Island Health, already have maintenance and operations levies in place.
A legislator in Idaho is pushing a bill in the Idaho Legislature that would give county commissioners the authority to remove property tax exemptions that are in place for hospitals. The stated intent of the bill is to reduce taxes for other property owners in the county; however, questions from other legislators have arisen as to the potential adverse impact on struggling hospitals, especially in rural or remote areas.
The Financial Accounting Standards Board (FASB) voted to approve two lease accounting changes that were introduced last fall: the first deals with whether an intercompany arrangement should be treated as a lease and the second deals with amortization of leasehold improvements.
The Alabama Hospital Association has warned that more than a dozen of the state’s rural hospitals are at immediate risk of closing, which may force more patients to large, urban hospitals. Alabama hospitals have lost $1.5 billion dollars since the start of the pandemic.