Healthcare Capital Markets 2025 Outlook

Top Buyers Likely To Remain The Same REIT M&A activity aside, private capital is driving the market

Finding Opportunities

• Private capital, consisting of developers, operators, institutional investors and real estate private equity (REPE) advisors, are expected to continue to be the most active buyer groups in 2025. • Hospitals, health systems and non-profits increased their annual buying activity, with sales volume higher in 2024 as those with the capacity to acquire took aim at more receptive sellers. • REITs have spent significant capital on acquisitions in the last 10 years. The bulk of their buying activity in 2024 consisted of the merger between Healthpeak Properties and Physicians Realty Trust. • Private investors were less active in 2024 compared to the previous eight-year annual average. Decreased activity was likely due to a drop in 1031 exchange opportunities.

$2.4

Developer/Operator - Inst

$2.1

REPE/Advisor

$0.6

Developer/Operator

$2.3

Hospital/Health System

$0.1

Non-Profit

$0.5

Investor/Private

$4.6*

REIT

$0.3

Provider

$0 $1 Billions Buyer Annual Average Investment Volume

$2

$3

$4 $5

$6

2024 2020-2023 2016-2019

Source: RevistaMed; Preliminary 2024 estimates; *2024 includes the Healthpeak/Physicians Realty Trust merger

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