Investments
Cypress Exchange Properties employs a strategic acquisition program that includes a solid base of core healthcare-related medical office assets while targeting specific strategic value-add opportunities. We seek healthcare properties that meet our acquisition checklist of 18 key performance indicators, which include both market demographics and property income stream metrics.
Acquisition Criteria:
- • Medical office properties in or near major metro areas throughout the Western United States that are characterized by strong economic growth and our ability to operate effectively.
- • Properties with a combination of strong macroeconomic fundamentals and positive demographic trends.
- • Primary focus on single asset transactions, but will consider larger well-located portfolios.
Why Healthcare Real Estate
Demand for healthcare real estate investment remains at an all-time high. One of the trends in the industry relevant to commercial real estate is the shift by providers from hospitals to more affordable outpatient facilities, including emergency care clinics, diagnostic laboratories and imaging centers.
The aging of the U.S. population is the primary driver of demand for healthcare products and services, which generates rapid employment growth and occupier demand for healthcare real estate. Seniors aged 65 and older comprised 14.9% of the population in 2015, but will account for 19.0% by 2025.
Despite legislative and organizational change in the healthcare industry, the healthcare property market has been resilient on both the occupier and investment sides. Market fundamentals indicate that absorption, occupancy and rent are at multi-year highs, while construction activity has been appropriate to the level of demand. Demand for healthcare properties is expected to remain solid as the industry continues to evolve.
Source: Global Healthcare Services, 2017 Health Care Outlook, Newmark Knight Frank