Colliers’ 2025 National Healthcare Conference arrived at a pivotal moment for healthcare real estate, amid improving capital markets and growing economic optimism. Compared to last year’s more tentative tone, this year’s event was notably upbeat, reflecting a broader sentiment that the healthcare sector remains one of the most stable and resilient corners of the commercial property market.
From Caution to Confidence
Shawn Janus and Marianne Skorupski of Colliers updated LevinPro HC on the mood of the room in New Orleans, describing a marked shift in outlook from the 2024 conference. “Last year, we were cautiously optimistic,” they noted. “Uncertainty was the watchword, everything from inflation and interest rates to the election,” created hesitation in the market.
This year, however, the tone was different. Inflation appears under control, interest rates are easing, and even though headwinds such as import controls and supply-chain costs persist, investors expressed greater confidence in their ability to make informed decisions. “Healthcare continues to be resilient and a favored asset class,” Colliers noted.
Capital Formation and Competitive Demand
One consistent theme across the conference was the growing appetite for healthcare real estate funds and the competition they face in deploying capital. “There continues to be capital formation for funds focused on healthcare real estate,” Janus and Skorupski observed. “Investors are actively seeking deals, but supply remains limited, creating intense competition for quality assets.”
Medical outpatient buildings (MOBs), ambulatory surgery centers (ASCs), and ambulatory care centers were repeatedly cited as the hottest investment opportunities for the next 12 months, with valuations rising as a result. These properties, designed to co-locate complementary services, are benefiting from the continued migration of care delivery away from inpatient settings and into more accessible outpatient environments. That satisfies both the patients’ desire for convenience and lower-cost care, and providers’ emphasis on efficiency and flexibility.
Not every subsector is seeing such a positive outlook. Rural hospitals remain under strain, facing a confluence of reimbursement pressures, staffing shortages, and limited access to affordable capital. Those trends have contributed to an uptick in rural hospital closures.
At the same time, Skorupski notes that “Hospital systems are increasingly exercising rights of first refusal to regain control of key properties, signaling a reversal from traditional monetization trends. They’re becoming more active buyers and negotiating purchase options in leases to retain flexibility.”
For more conference content, Skorupski published her 10 Key Takeaways on Colliers’ website, which you can access here.
