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“Durability speaks to credit, in this case the hospital system’s credit and how important the location is to the area. It tends to be a very durable income,” Bear tells GlobeSt.com. “Duration speaks to the length of the lease term, and generally doctors sign 15-year lease terms. Those two factors continue to be the reason why people invest in medical.”
Q4 Predictions: CRE Investment Will Continue To Glow, But Which Asset Class Will Be The Shining Star?
This year has been a time of relative success for the commercial real estate industry. According to NAIOP, the majority of CRE professionals have a favorable industry outlook for the near future, but lower overall confidence in the market than last year. Investors, however, remain optimistic for the fourth quarter, despite turbulence from external economic factors.