Medical office buildings (MOBs) are most often overlooked by real estate investors because they think that they are not better income-producing buildings than others, particularly in regional markets like McAllen, Texas.

However, the demand for healthcare-related properties is growing at a terrific pace, which means that a medical office space can be one of the most stable additions to the portfolio of any real estate investor.

At Cindy Hopkins Commercial Real Estate (CHRE), we will explore how this underrated investment opportunity is morphing into the most resilient opportunity in commercial real estate.

1. McAllen Is Shifting Rapidly Toward Outpatient Care

Across the U.S., more and more healthcare providers want to shift away from hospital-based care and head towards outpatient facilities.

In McAllen, medical office demand is growing because the healthcare providers want to serve patients close to where they live. In this way, they can reduce the fatigue and challenging work environment that is native to their career.

Outpatient centers in medical office buildings (MOBs) are much more cost-effective and convenient for healthcare services like diagnostics, physical therapy, and minor surgical procedures.

Since the whole demographic focuses on community-based healthcare, the number of medical offices in suburban neighborhoods throughout McAllen is increasing.

2. Demographics are what’s driving the Surge

The growing and aging population in McAllen is one of the major drivers for the demand for MOB space.

Chronic health issues are rising, and senior residents are mostly at risk. As their care becomes a central focus for the healthcare sector, the demand for Medical office buildings grows. These buildings offer specialized medical services for the patients, and for orthopedics, cardiology, and wellness-focused healthcare specialists, they offer stable settings.

For real estate investors, now is the perfect chance to invest in medical office buildings, as the consistent tenant demand and long-term lease stability will prove to be shining additions to any CRE portfolio.

3. Healthcare Real Estate Is Always Resistant To Recession

If there is one thing that is stable even during the worst economic downturns, it is healthcare.

No one stops needing healthcare, and the same is true for McAllen. This is why the medical office space has managed to remain highly occupied through the Great Recession and the COVID-19 pandemic.

Every other traditional office space in McAllen is facing downsizing and record-high vacancies, whereas MOBs continue to bring steady income for real estate investors, as well as a lower turnover.

CHRE understands that this resilience against recession is a profitable opportunity for both institutional and individual investors. Especially in a city like McAllen, healthcare access is always the major driving force behind local infrastructure.

Conclusion

Healthcare continues to become accessible and cost-effective for patients as well as healthcare specialists. This is why the demand for accessible care grows in regions like McAllen. In fact, McAllen on its way to becoming one of the key players in the medical office space.

Cindy Hopkins Commercial Real Estate connects investors and healthcare providers with the best MOB opportunities in the city, which will either prove to be beneficial for their portfolio or help them lease space in a growing market. No matter the case, medical office buildings in McAllen are not going anywhere.