Why Medical Office Buildings are recession proof
Kick off the new year with a recession proof investment
Let’s face it, with the
rise of so many startups, the demand for office and commercial space is only
going up. Commercial real estate buildings are often more lucrative than
apartment buildings and the best niche to invest in is medical office
buildings. Medical office buildings tenants’ offer services that are recession
proof. Whether the economy is slow or booming, everyone – sooner or later
– needs to see the doctor. It is a sector backed by demographic growth.
Many first world countries are saddled with an ageing
population, longer life expectancy, and the overall increase in demand for
healthcare services. The U.S.A alone is expected to double its number of 65+
citizens by 2050. These factors are supported by large government healthcare
funding and this leads to an increase in demand for medical-based property.
Although medical office
buildings do require specialized infrastructure and can be management
intensive, the type of tenant tends to vary, allowing investors a wide variety
of tenants to choose from. Tenants typically sign long-term leases that
allow them to remain in one location. With supply low and demand high,
medical office buildings are a premium investment.
Right
now San Diego is one of the hottest markets in the US. If you are looking for a
place to invest, it is Oceanside, San Diego. Conveniently located between Los
Angeles and downtown San Diego, Oceanside is a wildly desirable location to
live and visit.
With
a growing population of 173K and a median age of 36, Oceanside properties
remain a stable and valuable investment, especially those of medical and
professional use.
If you are looking for a stable and lucrative investment to kick off the new year, we have you covered. Currently,
a beautiful medical and professional office building near the highway 78 and 5
intersection with development land is on the market, and the market is hot.
Located at 2420 Vista Way, Oceanside, the plaza is a 3-story multi-tenant
building already occupied by professional, medical and dental tenants. The
building is anchored by a US Government tenant occupying 25% of the building
that just renewed and extended their lease for ten more years.
Not
only does the building have reliable tenants for the next decade but it also
has a huge value-add opportunity in the adjacent parcel. This area can be
developed into 2 single family residential lots and an expansion of the surface
parking for the office building. Investors can increase the NOI by converting
the vacant spaces to medical or dental offices when possible which command
rental rates almost 2 times that of general office space. View
the property brochure here
While medical real estate investment is not a short-term investment strategy, the medium and long-term outlook for medical property remains strong, making it an attractive proposition for investors. The long terms leases, regular payments and higher return of the medical net lease property are a particularly ideal property for those looking to expand their investment portfolio with an income property which possesses excellent long-term value. Don't miss the rare opportunity to invest in a recession proof space.
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