San Diego’s healthcare industry is fit and strong but could use a more thorough examination when it comes to long-term strategic planning and occupancy costs. The observations are included in a video just released by Jones Lang LaSalle on commercial real estate issues in San Diego. The healthcare video is part of a video series that recaps market performance of the past year in various sectors and provides guidance as to where the industry is heading.
According to broker Paul Braun, Managing Director with Jones Lang LaSalle’s Healthcare Solutions team in San Diego, “We are seeing a transition in that health systems are strategically planning for a much longer period – 20 to even 50 years – and a lot of this is due to the anticipated demand of the Affordable Care Act, aging baby boomers and advances in technology.”
Another trend that Braun sees locally is the acquisition of and alignment with independent physician groups by the large healthcare providers to become more competitive. With increased demand for services and expanding space needs comes the need for the major health systems – of which San Diego has six, all non-profit – to carefully and strategically address their short-, mid- and long-term real estate needs.
Chris Ross, Vice President, also with Jones Lang LaSalle’s Healthcare Solutions team, states in the video, “Now is a critical time for health care providers of any size to take a close look at their occupancy costs. Acquiring space, leasing, renewing, developing or building all have different impacts.”
The healthcare year-end insight video can be viewed here. Additionally, JLL brokers share information in videos focusing on local real estate conditions and opportunities in multifamily, capital markets and development.