Medical Office Investments: While fewer office sales were reported in 2009, medical properties accounted for roughly 25 percent of the total, up from 12 percent prior to the credit crunch. Despite deep office-using job losses in recent years, healthcare posted steady gains through the recession. The combination of aging baby boomers and potential healthcare reform will draw more investors to this segment in the near term. It is estimated that if 30 million uninsured gained coverage, as current legislation anticipates, the added demand would require approximately 59 million square feet of medical offi ce space beyond what is needed to satisfy normal demand trends. Cap rates in the medical offi ce sector have increased but not to the degree registered among traditional office assets, with the average of 8.5 percent up just 120 basis points from the low recorded in 2008.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.