Feature Story: Healthcare: The ‘Steady Eddie’ of CRE

But expiring Obamacare subsidies, other issues concern GlobeSt. panel

By John B. Mugford

The GlobeSt. HRE Conference “State of the Industry” panel included (from left to right): Kyle Arnold of Newmark, Chris Bodnar of CBRE, Jon Buehner of Capital One, Darryl Freling of MedProperties Realty Advisors, Steve Reedy of First Citizens and moderator John Chang of Marcus and Millichap. (HREI™ photo)

During what can only be described as a strong, profitable era for the owners of medical outpatient buildings (MOBs) and other types of healthcare real estate (HRE) facilities, uncertainty is perhaps the only potential dark cloud on the horizon.

This uncertainty includes a potential economic slowdown, as well as uncertainty about where interest rates and capitalization (cap) rates, or expected returns on newly acquired properties, are heading.

And, according to one prominent HRE professional, there is also uncertainty concerning the future of health insurance coverage for millions of Americans.

“The fundamentals of our sector, and this is the same as we’ve been talking about for years, remain strong,” said Darryl Freling, managing principal of Dallas-based MedProperties Realty Advisors, a private equity firm focused exclusively on HRE facilities nationwide. “Overall occupancies remain strong and year-over-year rent growth is higher than it’s been in many, many years.”

Mr. Freling made his remarks as part of a panel session at the GlobeSt. Healthcare Real Estate Conference held Dec. 1-2 in Scottsdale, Ariz. The “State of the Industry” panel session was moderated by John Chang, an economist and senior VP and national director of Research Services with Calabasas, Calif.-based Marcus & Millichap Inc. (NYSE: MMI).

Prior to the State of the Industry panel, Mr. Chang served as the keynote speaker, providing an overview of the economy and the HRE sector heading into 2026. Although he said “we have a really interesting year coming ahead for healthcare … there are a lot of moving parts, and I think that there’s a lot of opportunity that’s emerging from this as well.”