Many commercial real estate professionals are drawn to specializing in the healthcare sector because they find the work meaningful. Healthcare real estate directly impacts the well-being of communities by enabling the delivery of medical care and services. For those looking to pursue a rewarding career at the intersection of real estate and healthcare, here is a roadmap for success. While a medical background is not required, learning healthcare business models, key stakeholders, regulatory issues, and trends is extremely beneficial. This knowledge helps in serving healthcare clients well and speaking their language. Face time with doctors, health system administrators, and other providers is invaluable.
Learning the fundamentals of real estate
In tandem with learning healthcare, mastering real estate fundamentals is critical. A healthcare project is still a real estate project, so core competencies like financial analysis, deal structuring, asset management, and property development apply. Coursework, mentorships, internships, earning a CCIM designation, and cutting one’s teeth on non-medical projects help build a strong real estate foundation. Healthcare real estate builds on that foundation with specialized knowledge.
Cultivating networks and tracking opportunities
The healthcare real estate sector thrives on relationships and being entrenched in the market. Successful professionals build expansive networks across health systems, medical groups, investors, brokers, developers, contractors, and other players. It takes proactive relationship-building through events, trade groups, and day-to-day deal-making. Partnerships and referral pipelines take patience to cultivate but become invaluable sources of new business. Tracking health system strategic plans, legislation, new funding, and competitive projects also helps pinpoint opportunities.
This real estate requires navigating a complex web of regulations at the federal, state, and local levels. Rules like HIPAA, Medicare reimbursement formulas, Stark Laws, Certificates of Need (CON), licensure requirements, and more impact every project. Professionals must understand regulatory constraints and use specialized legal counsel to ensure compliance. Facilities like hospitals, ambulatory surgery centers, clinics, and medical office buildings each have their regulations too. Staying current on policies as they frequently change is essential. Conducting feasibility studies for healthcare projects involves specialized considerations beyond typical real estate metrics. Healthcare real estate experts layer in these key healthcare business factors when doing due diligence and modeling project viability.
Managing healthcare assets
Specialized property and facility management is crucial over a healthcare project’s lifecycle. Professionals need healthcare operations experience to oversee assets effectively. Expertise in areas like infection prevention, medical gas systems, health IT infrastructure, privacy protocols, provider relations, clinical department needs, emergency preparedness, and compliance helps optimize ongoing management. Tenant retention and meeting provider needs within healthcare facilities requires a specialized approach.
Identifying healthcare capital sources
Healthcare real estate relies on complex capital stacks spanning commercial lending, municipal bonds, philanthropic funds, government incentives, health system financing vehicles, and more. Navigating senior housing financing also has unique considerations. Experts develop a strong healthcare capital network and understand optimal structures for different providers and project types. They tap specialized appelt properties and consultants but also bring direct financing experience and creativity. Success in healthcare real estate requires building a prominent professional brand and reputation for expertise. Publishing articles, speaking at conferences, advocacy work, community board roles, teaching, and other thought leadership activities help solidify my status as a healthcare specialist. It establishes credibility with health systems and helps attract new business.