REIT.com’s latest video touches on the topic of the entire medical properties market by way of a chat with Debra Cafaro, CEO of the medical properties REIT Ventas (VTR). Ventas is a major player in medical properties from hospitals to senior care and from national to international markets, working, as do all REITs in the sector, as a channel for Medicare payments to be transformed into dividends distributed to shareholders. Cafaro says of the healthcare market that a mere 15% of US healthcare properties are present in REIT portfolios, but if she and her competitors have anything to do with it, the acquisitions will only pick up steam as time goes on.
The senior living sector is a major growth area in commercial real estate. The reasons for this boil down to classic supply and demand driven by demographics. Longer life expectancy in the United States mean steady growth in age cohorts that move into senior living facilities. The over-85 segment of the population is growing at three times the rest of the population. In 25 years, it is set to double. Further, a great number of existing facilities are older product, so new unit development is being spurred in most markets.
During the REALTORS® Conference & Expo in Orlando NAR collected donations to the REALTORS® Relief Foundation (RRF) for Hurricane Sandy disaster assistance. At a member forum at the conference, NAR President Moe Veissi announced that NAR would match members’ donations up to $500,000. Moe later wrote on Realtor.org:
“As REALTORS®, we help build and maintain communities. We aren’t just there when the time comes to buy or sell a home. We are there during periods of need as well. Now—in the wake of Hurricane Sandy—is one of those occasions.
As the global commercial property market evolves, it is marked by two kinds of growth. First, the sources of investment capital grow in number around the world. Then comes growth in the number of destinations for such capital. Buyers and investors in commercial real estate are increasingly international, so investments and returns have to make long trips to get where they’re going. When that’s true, the demand for clarity, predictability, reliable measurement and sustainability — known collectively in commercial real estate as transparency — becomes increasingly important.