Medical Real Estate Asset Evaluation Report – Dialysis Centers
According to a recent NREI research report, institutions and investment funds are the primary investor pool for dialysis clinics. In the past 12 months, however, the private real estate sector has made a major push in acquiring these deals. This commercial real estate sector is similar to retail, with comparable data on cap rate, credit, and lease terms. However, real estate medical assets differ in two significant areas: how an investor evaluates the commercial real estate location for a medical facility, and to gauge the profitability of the proposed lessor of the medical facility asset. Unlike retail, where the location is typically close to residential areas, the best location for a medical asset like a dialysis clinic, is typically close to a hospital, has sufficient access to freeways and major thoroughfares, is close to a convalescence home, and has sufficient onsite parking for staff and patients. Another factor is unlike retail, an investor will not have access to the medical facility revenue figures, since most of the medical facility revenues are reports to medical insurance agencies and government healthcare agencies like Medicare and Medicaid.
Read the full report on how investors can fully evaluate the operational value of medical assets, including cap rates, evaluating locations and profitability and gain insight into the overall future outlook of the single tenant net lease medical asset commercial real estate segment.