Inflation Compounds Healthcare Cost Concerns
Rising CPI is also impacting the medical office sector. On the supply side, rapidly rising material costs and labor shortages are causing delivery delays and extended fit-out periods for new properties. In addition, the Fed’s aggressive stance on raising interest rates to curb inflation is causing investors to reconsider their real estate strategies. However, investor demand for medical office assets remains strong.
In this report, we address the dual impact of high inflation on the healthcare industry and medical real estate and provide insights about the future.