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Feature Story: HRE firms remain optimistic about 2020

61.5% of HREI’s editorial board foresee their business increasing 10% or more

HREI Editorial Advisory Board members discussed the outlook for 2020 during their meeting in November. (HREI photo)

NASHVILLE, Tenn. – As we head into 2020, some of the top executives in the healthcare real estate (HRE) space are quite optimistic about how their business will fare in the new year.

Perhaps they are not expecting 2020 to be quite as successful as 2019, but they’re still quite bullish about their prospects for the year ahead.

The executives who responded to the survey are members of the Healthcare Real Estate Insights Editorial Advisory Board (EAB). They gathered in Nashville in early November for the annual HREI EAB meeting consisting of a daylong discussion about the current and future state of the HRE sector.

As part of the meeting, the 26 board members in attendance were asked to respond anonymously to a survey asking them how their businesses performed in 2019 and how they expect them to fare in 2020.

Their responses can be considered a good barometer of the overall prospects for the year ahead because the EAB comprises high-ranking executives with many of the HRE sector’s top brokerage firms, developers, investors and owners, health systems, advisors, and other firms involved in the space.

As they have for a number of years, EAB members were quite optimistic about their companies’ business prospects for the coming year, with 17 of the 26 responding, or 65 percent, saying they foresee an increase in business for their organizations in 2020.

Half of the EAB members said they anticipate growth of more than 10 percent in the year ahead. Although that’s an optimistic view, it is less than the percentage of board members – 61.5 percent — whose companies experienced that level of growth in 2019.

That’s because 16 of the 26 EAB members, or 61.5 percent, report that their businesses saw increases of 10 percent or more in 2019.

On the other side of optimism, just two of the 26 board members responding said they foresee decreases in their businesses in the year ahead.

Seven respondents, or 28 percent, said they foresee their businesses staying about the same in 2020.

Why the optimism for 2020?

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