New REITs are all over commercial real estates related to healthcare industry like the previous REITs were circling around residential real estate market during the boom. During the recession of the past few years as residential real estate market plummeted to a historic low, the commercial real estates as well witnessed their fair share of losses. As the ripple effect of the crash in banking system, real estate and construction went through the spines of retail industries, we witnessed closing of many stores and malls and shopping centers with highest vacancy rate in recent decades. This was also through for other segments of commercial real estate such as hotels and office buildings.
As baby boomers reached the rate of 10,000 retirees a day, a considerable market for healthcare hit the market with a short supply to satisfy the demands. One of the very few commercial properties that not only collapsed into the darkness of the recession but actually became a hot commodity has been anything related to the health industry. From active communities to Medical Office Buildings (MOB) demands have been in an all-time high and still going strong.
While the Pre-construction Investment Clubs, Real Estate Investment Trusts (REIT) became a thing of the past for residential real estate, the new REITs started to form specializing predominantly in healthcare sectors. The latest acquisition of five MOBs by the REIT managed by Grubb and Ellis Healthcare REIT II for $44 Million is an example of what is up with the healthcare related real estate industry.
