Medical office buildings can play an important role in a diversified core real estate portfolio, but are currently underrepresented in institutional real estate portfolios, according to a recent white paper from Upshot Capital Advisors.
The Case for Medical Office in a Core Real Estate Portfolio, by J.D. Sitton, head of strategy and capital markets at Upshot, and Donovan Hasfal, head of research at the firm, lays out the strengths of the subsector and suggests institutional investors should give it a closer look, especially given the current disruption of the traditional office market.
“Healthcare real estate is a substantial portion of the total U.S. real estate market and is underrepresented in institutional investor portfolios,” note Sitton and Hasfal. “Medical office can deliver enhanced real estate benefits to a mixed-asset portfolio: high and stable income, diversification, inflation protection, and a total return that provides a premium to bonds w