When investigating commercial real estate investment options, demographic shift may be an important factor. Property investments are often long-term, and social change may significantly alter the value of a property over time. Properties that will become increasingly valuable are probably better investments than those whose value will decrease.
Among commercial real estate property types, healthcare properties, nursing home complexes and retirement communities may be among those forecast to gain the greatest value over the coming decades. The “baby-boomer” generation of Americans is approaching retirement age; as a result, a significant segment of the American population may soon be seeking increased healthcare and housing options suited for retirees.
Healthcare and retirement homes already form a sizable portion of the American economy, and many project that these industries will grow substantially over the coming thirty years. As a result, healthcare properties, from large hospital complexes to smaller clinics, retirement communities and nursing homes may be an excellent long-term investment for those with the foresight to capitalize upon the opportunity now. The future demand will probably favor those who have invested early. Healthcare and retirement properties often require time to set up and establish; those who have invested in healthcare and retirement properties early may be well poised to capitalize on rising demand, before competitors enter the market.
For those seeking a commercial real estate investment opportunity that may be profitable in both the near and more distant future, healthcare buildings, nursing homes and retirement communities may be a prescient choice.