The fundamental story of healthcare real estate investment begins with demographics — everyone knows the U.S. population is getting older — but it doesn’t stop there. Both supply and demand fundamentals support the investment thesis.

“Clearly, the aging of the U.S. population is a demographic shift that is driving the long-term positive outlook we have for healthcare real estate — in particular, medical office buildings. About 10,000 U.S. residents turn 65 every day in the U.S.,” says Steve Bolen, U.S. head of healthcare real estate, LaSalle Investment Management.

A nation of older adults means more healthcare consumers.

“On average, an individual under the age of 45 has 1.7 healthcare visits per year, compared to 5.5 visits per year over age 65,” says Todd Kibler, managing principal at Hammes Partners.

Demand trends

On the demand side, healthcare is a $3 trillion industry; at approximately 20 percent of GDP, it rep