Special Report: What will reform bring?

HEALTHCARE REAL ESTATE PROS SHARE THEIR OPINIONS

By John Mugford

There has been plenty of talk about what type of impact the recent passage of the Patient Protection and Affordable Care Act of 2010, aka “ObamaCare,” will have on healthcare real estate and the medical office building (MOB) sector.

Speculation swings wildly, from reports indicating that as much as 60 million square feet of new MOB space will be needed in order to keep up with demand resulting from an additional 30 million or so people receiving health insurance. Others believe that demand will continue to be driven by a variety of factors, healthcare reform included.

When it comes to regional demand, Sharon Harper, president of Peoria, Ariz.-based Plaza Cos., believes that the medical office sector – in the reform era – could actually be a major driver of commercial real estate activity in the Phoenix market.

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