Despite Sequestration, More Capital Allocated to Healthcare Real Estate

Despite the 2% payment reduction to Medicare providers that is scheduled to take effect April 1st as part of sequestration, more capital has been allocated to healthcare real estate than ever before. As part of the CBRE Annual Healthcare Real Estate Investor/Developer Survey, we asked 500 of the top healthcare investors around the country how much they have allocated to medical office acquisitions in 2013. While not all investors chose to respond to the question, approximately $7.7 billion in capital has been allocated to the space according to the survey (note that we did not include developer allocations in our calculation and removed duplicate company responses). The top three non-traded healthcare REITs alone have allocated $2.6 billion toward acquisitions in 2013, with some currently raising up to $12 million per day through their broker dealer networks.

For the complete report, please visit: 4Q12 National Medical Office Investor Update