The Affordable Care Act and Commercial Real Estate

As a result of the Supreme Court’s decision to uphold the individual mandate which requires virtually all Americans to carry health insurance, the healthcare industry is poised for significant change.  The mandate has the potential to introduce a significant supply of new tenants into the commercial real estate market as healthcare providers expand to meet the demand of millions of Americans who will gain increased access to the system.  Not surprisingly, hospital stocks jumped after the decision, as hospitals will no longer need to provide free care to the uninsured, and demand for services will assuredly spike.

Despite lingering questions about a potential President Romney who will work to repeal the Act, the increased tax burdens on Americans without insurance, and small businesses which will be required to provide insurance to employees, in the near-term at least, landlords of medical office or related retail space are expected to see notable industry expansion.

Marcus & Millichap’s Hessam Nadji, Managing Director of Research Services, weighs in on the Supreme Court’s decision to uphold the Affordable Care Act and the resulting implications for commercial real estate investors:  Supreme Court Upholds Affordable Care Act, Impact Will Ripple Through Commercial Real Estate Sectors

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