Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

HEALTHCARE: DEMAND DRIVERS Aging demographics continue to support long-term demand for healthcare

• Healthcare spending has been on a continual upward trend in the United States, with CMS projecting that spending could exceed $6T by 2028. Per capita spending has similarly grown, with latest estimates suggesting an average of $12,500 spent per year, over $3,500 higher than ten years ago. • Baby boomers continue to flow through the 65+ age cohort, with Gen X approximately seven years away from beginning to enter this high-care age segment. These populations will continue to drive the number of required procedures across a range of different specialties. • While demand is strong and will grow, there are challenges to the sector. o In an AMN Healthcare survey, 85% of healthcare facilities were experiencing labor shortages. While healthcare employment has risen since the pandemic, the sector is still behind current demand. o Patient expectations have shifted the point of-care across specialties from inpatient to outpatient.

U.S. Healthcare Spending

U.S. Population by Age

5.0

8T

4.5

7T

6T

4.0

5T

3.5

4T

3.0

$ Healthcare Spending

3T

2.5

Millions of Persons (U.S.)

2T

2.0

1T

1.5

T

1.0

20 25 30 35 40 45 50 55 60 65 70 75

2000

2002

2004

2006

2008

2010

2012

2014 Year

2016

2018

2020

2022

2024

2026

2028

2030

Age

Source: CMMS, Moody’s Analytics, Cushman & Wakefield Research

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