Medical Offices Remain Attractive to Real Estate Investors

Despite a spike in telemedicine, video appointments, and the emptying of medical office buildings spurred by the coronavirus pandemic, investors continue to pour money into the sector. Leading the way among reasons for medical office buildings remaining a sought-after investment is that doctors and medical firms paid their rent during the pandemic — nationwide percentages ranging from below 85% to more than 95%; and patients are beginning to return to brick-and-mortar doctors’ offices, particularly since many checkups and procedures cannot be done remotely. In 2020 “investors purchased $11.2 billion worth of U.S. medical office buildings, down a moderate seven percent year over-year, in contrast to commercial real estate sales volume which fell 32% during the same period.