Net Lease Medical Offices in High Demand for Investors

Medical office buildings are among the net lease properties most demanded by investors, according to a recent survey National Real Estate Investor (NREI) conducted in February.

The survey polled individuals who work across the spectrum of net lease property types, including fitness, government, grocery, baking and financial, industrial, restaurant and fast food, and “miscellaneous retail.”

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Forty percent of survey respondents said medical office and health care net lease properties are currently in demand, NREI reported. The same percentage of respondents also said net lease drugstores are currently in demand.

About 24% of respondents, meanwhile, said industrial net lease properties are currently in demand, and just 14% of respondents said office net lease properties are in demand.

Additionally, of all of the net lease property types, respondents believe medical office and health care has the best outlook, the survey showed.

“There certainly has been escalating deal flow over the past several years as a lot of these facilities have been developed and delivered to the market,” Alan L. Pontius, senior vice president in Marcus & Millichap’s commercial property group, told NREI.

Read NREI’s complete survey findings here.

Written by Mary Kate Nelson