The Grubb & Ellis March 2008 Report for healthcare properties was sent over to us recently and it had some pretty interesting facts:
- The 65 and over age group will grow by 36 percent between 2010 and 2020 compared with nine percent for the general population.
- The 65 to 74 age group made an average of 6.5 visits per capita to physicians’ offices in 2005 compared with 3.3 visits per capita for all age groups. The 75 and over age group made an average of 7.7 visits per capita.
- The number of hospital beds in the U.S. fell from just over 1 million in 1982 to 808,000 in 2004, while the number of beds per 1,000 population declined from 4.37 to 2.75, signaling a growing propensity for consumers to access healthcare services in outpatient settings such as medical office buildings and freestanding clinics.
The report talks more towards commercial real estate investment in various healthcare properties and facilities than specific types of senior housing. By linking the report into the growth of senior housing projects, specifically the who, when and where are tightly correlated to the commercial real estate development efforts with respect to healthcare. While spending on construction and development may be slowing, the long-term prospects for growth paint a rosy picture.