Investor Interest Varies Greatly By Metro
You’ve probably seen the Revista chart on ownership makeup across the US. The one that shows 75% of outpatient inventory is owned by the user: physicians, providers and hospitals. This is a significant portion compared to say, hotels, in which the lion’s share is owned by investors. It’s interesting to note that although roughly 25% of inventory is investor owned nationally, the stats vary widely by metro. Some areas are predominantly owned by healthcare providers while other areas have a significant portion, sometimes majority, of the real estate owned by a third party – whether that be a REIT, institutional fund or private investor. For instance, while Portland has less than 20% of it’s inventory owned by investors, in Seattle, it’s close neighbor, they make up the majority at 55%. Why such a dramatic difference? Are the systems in Seattle more open to leasing their space? Is it harder to get the right relationships in Portland? Where metros like Minneapolis, Kansas City, New Orleans and San Francisco fall more in line with the national stats, metros like Indianapolis, Louisville & Phoenix are significantly above with more than half of their outpatient inventory owned by an investor. Want to find out about your market? Contact Revista for more information!