REIT Report: Healthcare reform has HTA thinking big

REIT is adapting its leasing strategy as medical office tenants increase in size  

By Murray W. Wolf

As we have been hearing for the past couple of years, the Patient Protection and Affordable Care Act, commonly referred to as healthcare reform, as well as other economic factors, are driving more and more formerly independent physicians to become hospital employees, or to merge with others to create larger practices.

For medical office building (MOB) developers and owners, one of the implications of that is a shift toward fewer but larger tenants – either in the form of hospitals with employed physicians, or larger medical groups.

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