Tri-State Healthcare: Property With a Pulse
May 8, 2023 15 Minute Read
- Increased demand for healthcare services is providing a lifeline to owners of medical office space and healthcare-tenanted office buildings across New York Tri-State.
- Healthcare providers in the Tri-State market grew their occupancy by 16% between 2019 and 2023 as they accommodate growing workforces and patient demand.
- The region’s major healthcare systems accounted for 35% of the health care sector’s occupancy growth since 2019 and notched a strong year of leasing in 2022, as hospitals took space in both medical and conventional office properties across the region.
- Despite a sharp drawback in transaction volume in 2022, medical office buildings out-performed most other major asset types in gaining and maintaining value over the past few years.
- With Local Law 97 enforcement set to begin in 2024, the energy consumption of healthcare occupiers could be a major consideration for owners that are increasingly scrutinizing the energy use of their tenants.