Issue link: http://viewer.e-digitaledition.com/i/970884
Need for Medical Facilities Expected to Grow INDICATIONS ARE STRONG that medical real estate will be a sturdy investment i n co m i n g ye a rs , a cco rd i n g to E ve re st Healthcare Properties LLC. Key trends driving this: + U.S. healthcare spending is expected to rise about 175 percent from 2015 to 2025. That represents an increase from 17.8 percent to more than 20 percent of GDP. + The population of elderly Americans is climbing rapidly. More than 98 million people will be older than 65 by 2060. A person who reaches age 65 has an almost 91 percent probability of living until age 85 and a 58.1 percent chance of reaching age 90. + A person 65 or older has approximately 2.5 times as many medical offi ce visits annually as a person under age 65. T h e s e fa c t o rs s u g g e st a s i g n i f i c a n t need for more medical facilities in coming decades, Everest Healthcare Properties notes on its website. n — Steve Barrett Net Leases a Popular Medical Offi ce Option N E T L E A S E S A R E comparatively common among medical offi ces and other healthcare facilities, according to a 2017 survey conducted by industry magazine National Real Estate Investor. Net leases require the tenant to pay a portion or all of certain costs that under other leases would be borne by the landlord. These may include expenses such as utilities, property insurance and taxes. Forty-fi ve percent of respondents, who work in the net lease real estate sector, said they deal with net leases related to industrial facilities. That was followed by restaurants (44 percent), offi ce (42 percent) and medical offi ce/health care (37 percent). At the lower end of the spectrum were fi tness facilities and government buildings (16 percent each), auto facilities (19 percent), and grocery stores (27 percent). n — Steve Barrett Protecting Your Patients — and Your Investment THE TIME-TE S TED E X HOR TATION "Above all, do no harm" applies to maintenance of the physical structure in which care is provided as well as to care itself. Safety-enhancing upkeep not only protects patients; it also helps preserve the value of the building and its contents. A key component of building maintenance is making sure the electrical system functions well, Loranne May, Marketing Specialist at Illinois-based Connelly Electric, writes in the online publication Healthcare Business Today. Power outages endanger patient care, May notes, and electrical issues frequently cause fi res. Some important maintenance tips: + Healthcare providers and property own- ers should have a licensed electrician inspect the wiring twice yearly. + The facility should exercise its emer- gency generators weekly, and oil and fi lters should be checked regularly. + The amps used by a piece of equipment should not be greater than the maximum permitted by the breaker. n — Steve Barrett 2 0