By 2025, there could be 65.2 million people in the U.S. aged 65 years old and up, compared to 47.7 million in 2015. That increase would be exponentially higher by percentage than the growth for Americans under 64, and would put seniors ever closer to 20% of the country’s total population.
The National Center for Health Statistics estimates that the number of annual primary care office visits for seniors is now more than 90 per 100 people, versus around 70 per 100 people for the next closest age group, under 15 years olds. As seniors multiply, so will the need for healthcare and, potentially, medical office space.
A new report from Transwestern estimates that over 150,000 healthcare practitioners could be added to the economy over the next two years. Therefore, the total demand for medical office space in the U.S. for physical, clinical, mental, and dental services could range anywhere from 150.5 million sf to 225.8 million sf, as per estimates by MedSpace.
As of the second quarter of 2018, there were 110 million sf of existing or under-construction medical office space in the U.S. An example of new projects is the $25.3 million, 52,704-sf, three-story OSF HealthCare medical office building that recently broke ground in Bloomington, Ill.
These numbers, though, indicate that there could be a serious shortfall in office availability going forward. “Absorption of this demand is impossible,” states the report’s author, Elizabeth Norton, Transwestern’s Managing Research Director, Mid-Atlantic Region.
Without a major shift in how healthcare is delivered, the country’s most populous areas—and especially New York, Dallas-Fort Worth, Atlanta, Denver, and Miami-Fort Lauderdale—would have serious difficulties accommodating practitioners wishing to serve patients from a medical office, even at the low end of the projected growth range.
The country, and particularly its largest metros, are facing a serious shortage in available medical office space. Image: Transwestern
There are alternatives, suggests Norton, such as leasing in conventional office buildings where there’s ample space available. Repurposing empty retail spaces for medical use is another.
Norton also points to the emergence of new forms of healthcare, such as telemedicine, digital health, and shared service centers, as options that “could suppress future demand to some degree,” albeit depending on how quickly these nascent approaches catch on within the healthcare sector.
Earlier this year, the marketing intelligence firm Transparency Market Research estimated in a report that the so-called telehealth market in the U.S. would expand by nearly 15% to $2.8 billion by 2025. “North America and Europe are projected to dominate the global telehealth market … driven by government incentives …, technological advancements, and efforts of key players to expand their market presence,” the report stated.
Transparency Market Research has also estimated that a more robust digital health market in North America could expand by 13.4% annually to $80 billion by 2025.
Related Stories
| Aug 11, 2010
Report: Fraud levels fall for construction industry, but companies still losing $6.4 million on average
The global construction, engineering and infrastructure industry saw a significant decline in fraud activity with companies losing an average of $6.4 million over the last three years, according to the latest edition of the Kroll Annual Global Fraud Report, released today at the Association of Corporate Counsel’s 2009 Annual Meeting in Boston. This new figure represents less than half of last year’s amount of $14.2 million.
| Aug 11, 2010
Jacobs, HDR top BD+C's ranking of the nation's 100 largest institutional building design firms
A ranking of the Top 100 Institutional Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Nonprofit healthcare providers turn to real estate for liquidity and to preserve capital, says Jones Lang LaSalle report
Long considered to be stable investments immune to recession, hospitals and other healthcare facilities are now feeling the effects of a cash-strapped economy as decreased charitable contributions are forcing nonprofit hospitals to pare back and seek new financing sources, according to Jones Lang LaSalle’s 2009 Healthcare Real Estate Financing Outlook.
| Aug 11, 2010
Gafcon announces completion of Coronado animal care facility
Gafcon, a leading California-based construction management and consulting firm, announced today that construction is now complete on a new $1.6 million animal care facility located at 1395 First Street in Coronado, Calif.
| Aug 11, 2010
Colorado hospital wins LEED Gold
The main building of the Medical Center of the Rockies in Loveland, Colo., is a 136-bed regional medical center offering a full spectrum of services, with specialties in cardiac and trauma care. Constructed primarily of brick, native sandstone, and 85,000 sf of metal panels manufactured by Centria, the 600,000-sf main building, by Denver-based HLM Design, is one of the few hospitals in the nati...
| Aug 11, 2010
Biomedical center to join London's research scene
The UK Centre for Medical Research and Innovation, a partnership of scientific organizations researching new treatments for illnesses such as cancer and heart disease, hopes to attract leading medical scientists to its planned research center. Designed by HOK London, the building will be located on 3.
| Aug 11, 2010
Design ups comfort, care in cancer center
A new cancer center is slated to open in fall 2011 at Banner Gateway Medical Center, Gilbert, Ariz. The three-story, 120,000-sf, $107 million cancer center will contain physician clinics, medical imaging, radiation oncology, infusion therapy, and support services. A/E firm Cannon Design has created a visually open, column-free interior to increase patient comfort and care.
| Aug 11, 2010
Charlotte hospital expands its surgery capabilities
The Chicago office of RTKL designed Carolinas HealthCare System's Mercy Medical Plaza, Charlotte, N.C. The 150,000-sf hospital houses 12 operating rooms with expanded pre-operative and recovery space, a pharmacy, and a central sterile processing unit. Tenant space occupies 75,000 sf. RTKL mimicked the materials and mass of older buildings on the campus but created a more modern look by using ex...
| Aug 11, 2010
And the world's tallest building is…
At more than 2,600 feet high, the Burj Dubai (right) can still lay claim to the title of world's tallest building—although like all other super-tall buildings, its exact height will have to be recalculated now that the Council on Tall Buildings and Urban Habitat (CTBUH) announced a change to its height criteria.