Healthcare Reform and Commercial Real Estate

The Patient Protection & Affordable Care Act (PPACA), commonly referred to as The Affordable Care Act and otherwise known as “Obamacare”, was signed into law in 2010 and became effective January 1, 2014. This legislation represents the most significant overhaul of the U.S. healthcare system since 1995 and can be expected to impact both the healthcare industry and those investing in medical facilities. In fact, the National Real Estate Investor estimates that an additional 64 million square feet of space will be needed to accommodate increased services in this sector.

As a result of healthcare reform, we can expect to see an accelerated demand for and increased investment in commercial real estate, especially medical office buildings. But, what remains to be seen is how the disruptions and changes resulting from Obamacare will impact the commercial real estate industry. What winning strategies are investors adopting in response to healthcare reform?

For a discussion of the influence of healthcare reform on commercial real estate, including investor activity and how the changes are affecting the medical office building environment, click here

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