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How Retail Healthcare Is Creating New Real Estate Opportunities

Wealth Management

Healthcare providers’ preference for retail spaces has put them in competition with bricks-and-mortar retailers, triggering a race for premium retail spaces.

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Leading Index for Commercial Real Estate Decreased 7% in March

Calculated Risk

On the commercial side, weaker planning activity for warehouses, data centers and retail stores drove this months decline. On the institutional side, planning activity slowed for education, healthcare and government buildings. Meanwhile, hotel and office planning continued to accelerate.

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Fed's Beige Book: "Economic activity increased slightly to moderately"

Calculated Risk

Contacts in several service industries, notably healthcare, continued to see job growth. Contacts in most Districts reported modest increases in selling prices, though there were instances of flat or decreasing prices as well, particularly in the retail and manufacturing sectors.

Economics 162
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Leading Index for Commercial Real Estate Increased 1% in April

Calculated Risk

Office and hotel planning saw a sharp retreat this month, while warehouse and retail planning modestly ticked up. On the institutional side, planning momentum waned for education, healthcare, and government buildings. Without data centers, commercial planning would have receded 2.3% in April and the entire DMI would have receded 3.0%.

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Leading Index for Commercial Real Estate Increased 8% in July

Calculated Risk

Data centers continued to play an important role in growth, and retail planning has been steadily accelerating over the past eight months. On the institutional side, healthcare was the primary driver of this month’s expansion. Within the commercial portion of the Index, growth was widespread across all segments.

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Leading Index for Commercial Real Estate Increases in December

Calculated Risk

“While some of that will likely erode in 2023 as economic growth wanes, increased demand for some building types like data centers, labs, and healthcare buildings will provide a solid floor for the construction sector.” Commercial planning in December was supported by broad-based increases across office, warehouse, retail and hotel planning.

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Leading Index for Commercial Real Estate Increased 3% in August

Calculated Risk

Hotels and retail planning have been steadily expanding as well. On the institutional side, healthcare was the primary driver of this past month’s expansion, followed by recreational planning. After slowing down in recent years, warehouse projects have gained momentum over the last three months.