Updated almost 8 years ago on . Most recent reply
Medical Office Investing
Dear All,
I am a residential RE investor with an interest of expanding into Commercial Real Estate. I am specifically interested in small Medical Offices in the San Francisco Bay Area. Totally new to this so please let me know if you can point me in the right direction towards resources, information, etc. Looking forward to hearing from you!
Warmly, Ann
Most Popular Reply
@Account Closed is correct that the medical industry is fairly recession proof. The problem is that a lot of private practices are being slowly pushed into oblivion by insurance carriers and hospital systems for a multitude of reasons that are beyond the scope of this thread. As such, practices owned by hospital systems will NOT be renting from you - they will be situated in office space owned (or to built) by the hospital system itself. So you need to know the local medical community - is it heavily private practice (which is becoming rare)? Or is it heavily hospital owned practices (or groups like Kaiser for example)? In addition, you will be paying a very high premium for office space near hospitals, so watch your numbers carefully. But this is not nearly a "sure thing" compared to 10 years ago, and much riskier now.