Thanks to its traditional business models and superb demand, commercial real estate is known as one of the most stable asset classes for investors. One of the lesser-known subclasses is medical real estate, which offers investors of all types an opportunity to gain exposure to the best of both worlds: healthcare and real estate.
The demand for medical real estate is consistently growing, due to the strong rise of the healthcare economy in the developed world. In the US alone, the healthcare industry has cemented itself as one of the largest employers across the nation, accounting for more than 16.9 million employees, or 13% of the entire workforce.
Healthcare real estate, as an asset class, accounts for more than $1.2 Trillion in value and even stronger projected growth. Some of the specific property types include:
- Acute Care Hospitals
- Emergency Care
- Rehabilitation Facilities
- Surgery Centers (ASC)
- Behavior Healthcare
- Dialysis Centers
- Cancer Treatment Facilities
- Diagnostic Centers
Healthcare real estate can also attribute its success to a steady increase in demand, partially by an aging population. Projections based on current statistics show, that by 2030:
- The 65+ population will nearly triple as a result of the aging Boomers
- More than 60% of the Boomers will be managing more than one chronic condition
- More than 30% of the Boomer population will be considered obese
- One of every four Boomers, will be living with diabetes
- Nearly one out of every two Boomers will be living with arthritis
- 8x more knee replacements will be performed compared to today
How are we leveraging this niche?
DMCC Holdings is proud to be an asset management company that actively advocates for medical real estate through its proprietary investment strategy. We have always been believers of asset classes such as healthcare, office, and retail real estate, making us leaders in this space.
The DMCC Performance Fund series incorporates a 70/30 asset mix of medical and office/retail properties. These offerings are specifically designed to exploit stability and weather tough economic conditions such as economic downturns or black swan events like this pandemic. This is also evident in our extremely low rent deferral (less than 2%), offering us a unique advantage.
The Performance Fund series also takes advantage of Florida’s booming economy, thanks to a steady increase in healthcare demand by seasonal residents and an overall aging population. Florida’s healthcare sector attributes its strength to demand by end-users and the healthcare sector itself, which stations many of its regional offices in Florida.
Our latest offering, the DMCC Performance Fund 2, gives investors an opportunity to take advantage of our asset mix that delivers capital security, growth, and pride-of-ownership. The best part? The fund is eligible for tax-advantaged registered plans such as RRSP/TFSA in Canada, and IRA/401K in the United States.
Interested in learning more? Contact email@example.com to set up a one-on-one consultation.