In this edition of Anchor Viewpoints, we examine several specialized healthcare real estate property types that are increasingly relevant in today’s market: inpatient rehabilitation facilities, ambulatory surgery centers, micro hospitals, freestanding emergency departments, behavioral health facilities, and the Program of All-Inclusive-Care for the Elderly (PACE).

Anchor has long focused on medical outpatient buildings (MOBs), but the broader healthcare real estate sector includes a diverse range of property types that offer unique investment potential. Our interest in MOB investing emerged over a decade ago from our view that as a relatively new and niche property type it was at the beginning of a cycle where it would attract both individual and institutional capital.

Challenges within the U.S. commercial real estate market have frequently been linked to issues in the financing markets. For example, during the Great Financial Crisis, difficulties in residential subprime lending extended into the commercial real estate lending market, which was similarly characterized by relaxed lending standards.

Anchor views middle market real estate as being properties with a value of $5 million to $20 million and an equity investment of approximately $1 million to $5 million. In our experience, this size range is typically too small for many institutional investors but too large for sponsors or developers to easily fund with their own or self-sourced capital.

In this installment of Viewpoints, we will discuss and analyze current market conditions and their impact on the MOB sector. Additionally, and in light of those conditions, we will discuss the structural demand drivers that we believe support MOB investment.

Telehealth, or what is sometimes called telemedicine, has the potential to transform the delivery of outpatient healthcare services and chronic disease management.  Telehealth refers to the use of digital platforms and devices to deliver health services remotely, such as online primary and specialty care consultations, remote monitoring, and virtual care.   

The commercial real estate market, particularly the office sector, has been significantly impacted by the convergence of higher interest rates, tighter lending standards, and the growing trend of remote work. This edition of Viewpoints aims to explore how these factors are impacting the commercial real estate markets. 

For this quarter’s Viewpoints, we focus on a few macro-economic factors that we monitor as we evaluate investments and manage our current portfolio. Future installments are likely to delve deeper into some of these topics. 

In this edition of Viewpoints, we share our thoughts on the impact of higher borrowing rates on private commercial real estate. 

In this Viewpoints, we share our thoughts on the causes of the current inflationary environment, how real estate may act as an inflation hedge, and how Anchor’s investment strategy is influenced by this.