Health Care Bill May Boost Commercial Sector
April 1, 2010
Source: The Wall Street Journal, James R. Hagerty
Could 32 million people with health insurance heading for the doctors prove to be a boon for commercial real estate?
Paul Wexler of Corcoran Group, who specializes in health care real estate, says he is already seeing increased interest in medical office space.
Likewise, Eileen Sheil, a representative of Ohio's Cleveland Clinic sees the new law stimulating upgrades of existing facilities, because older facilities are "not meeting the needs of the way patients are treated now."
Other practitioners in the space were cautious. Debra Cafara, CEO of Ventas Inc., a real estate investment trust specializing in health care facilities, says that while she expects demand to rise, some potential tenants will back away because of declines in reimbursement levels.