Why Has Medical Office Captured the CRE Spotlight?

Mitchell Yankowitz of Medical Office Asset Management.

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NEW YORK CITY – Medical office has captured the real estate spotlight as the sector continues to see strong investment sales with large hospitals buying up doctor practices, and the development of off-campus patient facilities takes off, Mitchell Yankowitz, managing partner at Medical Asset Management, a medical real estate advisory firm, tells GlobeSt.com.  

Nationally, there has been a lot of consolidation and acquisitions of smaller doctor practices in the market as larger healthcare institutions seek to bulk up on assets that could serve as outpatient facilities to offer quicker and better quality care in a cheaper and more streamlined way, Yankowitz said. “Healthcare has gotten so expensive, health care providers are exploring ways to become more efficient without compromising patient care,” he said.

Hospitals such as Mount Sinai Health System in New York and UCLA and Cedars-Sinai Medical Center in California are examples of larger hospital systems gobbling up smaller institutions to absorb their cash and private insurance patients.