Healthcare real estate remains a modest part of the overall commercial real estate industry, but in an environment where institutional investors are increasingly looking for alternatives to traditional property types, it is worth taking a closer look at the sector.

We use the term “healthcare real estate” to generally describe a broad set of property types whose primary purpose is (a) to facilitate the delivery of healthcare or (b) to serve as the primary residence of senior citizens. Unless otherwise noted, all data is for the United States only.

This article is an excerpt from a more extensive research paper on healthcare real estate that was recently completed by Bard Consulting. In this excerpt, we have focused on capital markets trends for healthcare properties and healthcare REITs.

The total value of healthcare real estate assets was estimated by JLL to be $1.2 trillion in 2019.

The industry is still highly fragmented, with many local and region