Weekly Health Care Real Estate Briefing: Best Places to Live in North America I Largest Driver of Health Care Costs I Niche Senior Housing Communities

1. The leading driver of large employer health care costs are cancer, musculoskeletal conditions and cardiovascular disease according to a new survey of large employers across the country. Employers cover 82% of employee health care costs and health insurance costs increased 8.2% last year for large employers.
2. The Economist released its list of the Best Places to Live in North America – each city is ranked based on 30 factors related to education, culture, the environment, health care, infrastructure and stability. The top 5 cities were Calgary, Vancouver, Toronto, Montreal and Atlanta.
3. Copper Sky Park, a proposed medical and innovation park in suburban Phoenix, is one of the largest new health care development projects in the country. The project is estimated to cost $762M. It will include 1.6M sf of space, including a new ASC, micro-hospital, MOB, hotel and innovation center per Commercial Property Executive.
4. LifePoint Health announced plans to acquire an interest in the operations of Springstone Health from Medical Properties Trust. Springstone operates 18 behavioral hospitals per Business Wire.
5. Hall Render attorneys recently published the following real estate articles: 1. The Disruption in Primary Care – Is Amazon Doubling Down?; 2. Does Time Really Kill Deals?; and 3. What would Sam Zell buy if he were investing in health care real estate?
6. ASHA released a list of the largest senior housing owners and operators. The largest owners are Welltower, Ventas and Brookdale and the largest operators are Brookdale, Atria and LCS.
7. H2C released its mid-year capital markets update for the senior housing industry, finding that bond issuances dropped 38% quarter over quarter due to rising interest rates, favorable demographic trends still exist, but credit quality is even more important when accessing capital markets and cost of capital still remains historically low.
8. Niche communities are the future of senior housing according to Loren Ostrow. Communities that are based on ethnic, religious, cultural or service-driven themes are in demand according to Senior Housing News.
9. S&P published CEO compensation data for the largest real estate investment trusts (“REITs”). The report looked at the ratio of CEO pay compared to the median employee salary. They found that 16 of the 20 REITs reported an increase in CEO pay to employee pay, and CEO pay ratios ranged from 64x to 700x the median employee salary.
10. The top markets for MOB rent growth are San Jose (4.1%), Las Vegas (3.8%) and Phoenix (3.3%). Rent growth is driven, in most cases, by demand outpacing supply according to Revista.

Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.