An aging population and the effects of the new government legislation and programs surrounding the delivery of health care services are putting pressure on the health care industry to alter the way it does business. The offshoot of these changes has resulted in a spate of real estate deals in the New York market.
MedRite Urgent Care is a NYC business located on Second Avenue that provides check-ups, drug testing and other primary and urgent medical care for walk-in patients. The clinic opened in February 2011. Their primary location is a busy with business professional having blood drawn during their lunch hour, and neighborhood residents who like the convenience.
MedRite is now looking for five new locations in NYC to expand their business, just one of many such expansions buy health care providers underpinning demand for commercial space in NYC. This year there have been 42 of these transactions in New York City, including new leases and renewals totaling more than 1.2 million square feet. This total is twice that of last year, when only 25 transactions and 550,700 square feet were leased.
With President Obama’s health care overhaul adding a potential 32 million people to the ranks of the insured, it is natural to expect an increase in the demand for medical services. Though the overall outcome and results of the historic legislation are still unclear, many healthcare providers and hospitals are bracing for a surge in demand. And in the case of many urban areas, this increase in demand may very well be seen in the commercial real estate market.
My take:
The ramifications of the new healthcare bill will not be seen, or fully felt for years to come. While some might argue that ultimately the bill is going to be paid by the taxpayer, it can just as easily be argued that the boom to the economy from examples like that cited above will be a justifiable offset.





