Florida, like all the states in the country, has always had a need for places where medical professionals can practice. Unlike retail or other commercial services, there’s nothing optional about medical treatment. It’s an essential service that everyone benefits from.

Unlike other states in America however, Florida, and South Florida in particular, has always had a much more prominent, growing need for more and more spaces that medical facilities can operate in. And in 2016, this need shows no signs of slowing, and is looking like another growth year as demand continues to increase.

A Demographic In Need for Medical Space

One of the biggest reasons for South Florida’s constant demand for more medical spaces is the higher than average population of seniors that call Southern Florida either a permanent or seasonal home. The warm temperate weather of the state has always made South Florida a popular destination for seniors from both the Northern USA and Canada, resulting in a very high ratio of the elderly, many of whom are in need of some kind of regular medical attention or supervision.

That constant growth of the elderly population in many areas of South Florida has created sizable areas that are in need of professional medical facilities in easy proximity to these residential areas. And that’s one reason why Class A and B medical spaces are snapped up almost as quickly as they are made available on the market.

Curiously, despite the fact that this is a fast growing sector of the real estate market, it’s largely a “local phenomenon,” in that the individuals and companies that choose to invest in these spaces are American. This is in contrast to residential or hospitality real estate where sizable amount of foreign investment occurs, especially in the Miami-Dade county. So for now, at least, the growth in medical facilities is largely a home-grown one, which is a good thing, because the need continues to increase.

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More Medical Patients Than Ever

Another big factor in the need for more medical facilities have been the recent changes to the healthcare system. The Patient Protection & Affordable Care Act, known colloquially as “Obamacare,” has dramatically broadened the scope of people that can now visit hospitals and clinics for medical care. This has resulted in large spikes of people seeking to take advantage of better medical treatment now that they have insurance plans that cover some of their needs.

An unexpected side-effect of the implementation of the this healthcare act is that now that it’s had a few years put in practice and has been largely regulated, many facilities are finding that Medical Office Buildings are cheaper to operate and incur more savings than traditional hospitals. This is because the regulations surround hospitals versus other medical facilities differs greatly, with hospitals being subject to many more regulations and laws they are expected to comply with, versus practices in medical office buildings.

It looks like 2016 is simply going to increase both the growth and the demand for medical spaces in South Florida, which means that there will be plenty of opportunities to capitalize, but they are unlikely to remain available for very long.

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