- VMG Health published its Health System Leaders Expectations Survey for 2024. Leaders say physician strategy will be a major area of focus, de novo expansion projects will be a priority in current markets and M&A will continue to be a growth strategy in 2024.
- Commercial Property Executive released its Medical Office Trends to Watch in 2024. Key highlights include the following: a pause in interest rate increases should help investors and lenders underwrite new transactions; financing challenges do exist for the sector; investors are intrigued by the possibility of adding behavioral health tenants to MOBs; and construction starts should be steady in 2024.
- Morgan Stanley released its 2024 Private Real Estate Outlook. Low vacancy, elevated construction costs and a shortage of financing options are likely to limit supply in the near term. These factors should drive rent growth in high-quality assets.
- Hall Render is hosting its Health Care Employment Law Summit on April 25 and 26 in Scottsdale, Arizona. This is a terrific event for hospital and health care attorneys and human resources executives. For details email HGoode@hallrender.com.
- PWC released its 2024 Real Estate Outlook. PWC believes the worst of inflation is behind us, which should result in the Federal Reserve pausing interest rate increases and potentially cutting rates. 78% of investors say there is a shortage of debt for real estate transactions. Investors are looking for assets in the following categories: wellness, data centers, affordable housing and other residential assets.
- PWC also released its 2024 Health Services Outlook, and PWC remains cautiously optimistic about the sector. Private equity firms have a lot of capital on the sidelines looking for opportunities, which could drive an increase in transaction volume. Higher interest rates and challenges securing financing continue to drive down valuations.
- Prudential released its 2024 Real Estate Outlook. Real estate is still repricing based on elevated interest rates, and some assets could drop up to 10% in value. Debt is hard to find, which has suppressed transaction volume.
- McKinsey released its 2024 Payers Outlook. Higher health plan utilization will likely result in a 9% increase in premiums. Payers will continue to explore vertical integration by acquiring pharmacies and providers and opening alternative care sites.
- Hilltop Securities released its 2024 Senior Living Sector Outlook and issued a cautionary outlook for the sector. Occupancy has improved significantly, and labor costs are starting to level off. The sector continues to struggle from the effects of the pandemic.
- U-Haul released a report summarizing the Top Growth States in the U.S. based on population migration. The top five states for growth were: Texas, Florida, North Carolina, South Carolina and Tennessee.
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.
