Remington - Has Access to Capital for Healthcare Projects

The new healthcare reform package has some industry experts predicting "a burst in pent-up demand" for medical care facilities. One expert went so far as to say, "It is not outside the realm of possibility that (medical office buildings) will need between 45 million and 60 million square feet of additional inventory over the next ten years to handle the influx of patients."

Even before the Administration's yearlong effort to provide medical coverage to 30 million uninsured Americans, medical office assets were deemed "more stable" than traditional office properties. For one thing, healthcare remains the strongest sector of the economy. For another, only 1% of medical office buildings were rated as distressed last year, whereas about 3% of traditional office assets were viewed as being at risk of default or foreclosure.

All of which is good news for savvy brokers.