On May 7, 2025, more than 1,400 people convened in Denver, CO, for the BOMA International Medical Real Estate Conference at the Sheraton Downtown Denver. The overall mood of attendees was cautiously optimistic, as the historical resilience of the healthcare industry is expected to continue despite headwinds in the overall economy and other property sectors within commercial real estate. With the healthcare sector drawing increased attention compared to other asset classes, the conference highlighted major trends driving the sector.  Experts shared the following insights driving the healthcare landscape: 

  1. Investment interest is higher than ever, but supply remains limited. Capital typically allocated for other property types is now being focused on healthcare, due to the historically steady returns on investment and forecasted growth. However, the stability of the sector has resulted in owners holding properties longer and limited opportunities for new investors.
  2. Hospital systems continue to transform, resulting in increased M&A activity. Increasing the ability to add new specializations to the scope of services creates new competitive advantages in new geographies and with new patient populations.
  3. Integrating AI and other new technologies into healthcare will happen sooner than most realize. A lot of existing AI-backed technology has not been integrated into the healthcare space. Companies are actively engaging health systems and providers about integrating AI into their existing platforms.
  4. Increasing the number of ambulatory service centers (ASC) allows health systems to increase projected revenue streams for outpatient services. Many health systems are looking at potential conversions of hospital-based outpatient facilities to an ASC to capitalize on the forecasted revenue opportunities.
  5. The labor shortage (nurses, physicians and the overall healthcare workplace) continues to influence decision-making.  Providers’ strategic growth initiatives are being impacted by staffing issues for both existing and future locations.