By 2025, there could be 65.2 million people in the U.S. aged 65 years old and up, compared to 47.7 million in 2015. That increase would be exponentially higher by percentage than the growth for Americans under 64, and would put seniors ever closer to 20% of the country’s total population.
The National Center for Health Statistics estimates that the number of annual primary care office visits for seniors is now more than 90 per 100 people, versus around 70 per 100 people for the next closest age group, under 15 years olds. As seniors multiply, so will the need for healthcare and, potentially, medical office space.
A new report from Transwestern estimates that over 150,000 healthcare practitioners could be added to the economy over the next two years. Therefore, the total demand for medical office space in the U.S. for physical, clinical, mental, and dental services could range anywhere from 150.5 million sf to 225.8 million sf, as per estimates by MedSpace.
As of the second quarter of 2018, there were 110 million sf of existing or under-construction medical office space in the U.S. An example of new projects is the $25.3 million, 52,704-sf, three-story OSF HealthCare medical office building that recently broke ground in Bloomington, Ill.
These numbers, though, indicate that there could be a serious shortfall in office availability going forward. “Absorption of this demand is impossible,” states the report’s author, Elizabeth Norton, Transwestern’s Managing Research Director, Mid-Atlantic Region.
Without a major shift in how healthcare is delivered, the country’s most populous areas—and especially New York, Dallas-Fort Worth, Atlanta, Denver, and Miami-Fort Lauderdale—would have serious difficulties accommodating practitioners wishing to serve patients from a medical office, even at the low end of the projected growth range.
The country, and particularly its largest metros, are facing a serious shortage in available medical office space. Image: Transwestern
There are alternatives, suggests Norton, such as leasing in conventional office buildings where there’s ample space available. Repurposing empty retail spaces for medical use is another.
Norton also points to the emergence of new forms of healthcare, such as telemedicine, digital health, and shared service centers, as options that “could suppress future demand to some degree,” albeit depending on how quickly these nascent approaches catch on within the healthcare sector.
Earlier this year, the marketing intelligence firm Transparency Market Research estimated in a report that the so-called telehealth market in the U.S. would expand by nearly 15% to $2.8 billion by 2025. “North America and Europe are projected to dominate the global telehealth market … driven by government incentives …, technological advancements, and efforts of key players to expand their market presence,” the report stated.
Transparency Market Research has also estimated that a more robust digital health market in North America could expand by 13.4% annually to $80 billion by 2025.
Related Stories
| Aug 11, 2010
Stimulus funding helps get NOAA project off the ground
The award-winning design for the National Oceanic and Atmospheric Administration’s new Southwest Fisheries Science Center replacement laboratory saw its first sign of movement last month with a groundbreaking ceremony held in La Jolla, Calif. The $102 million project is funded primarily by the American Recovery and Reinvestment Act.
| Aug 11, 2010
National Intrepid Center tops out at Walter Reed
SmithGroup, Turner Construction, and the Intrepid Fallen Heroes Fund (IFHF), a nonprofit organization supporting the men and women of the United States Armed Forces and their families, celebrated the overall structural completion of the National Intrepid Center of Excellence (NICoE), an advanced facility dedicated to research, diagnosis, and treatment of military personnel and veterans sufferin...
| Aug 11, 2010
Alabama hospital gets a four-story addition
Birmingham, Ala.-based Hoar Construction has completed the North Tower addition at Thomas Hospital in Fairhope, Ala. The four-story, 123,000-sf addition accommodates an ER on the first floor, 32 private patient rooms and nursing support on the second and third floors, and room for 32 planned patient rooms on the top floor.
| Aug 11, 2010
America's Greenest Hospital
Hospitals are energy gluttons. With 24/7/365 operating schedules and stringent requirements for air quality in ORs and other clinical areas, an acute-care hospital will gobble up about twice the energy per square foot of, say, a commercial office building. It is an achievement worth noting, therefore, when a major hospital achieves LEED Platinum status, especially when that hospital attains 14 ...
| Aug 11, 2010
Hospital Additions + Renovations: 14 Lessons from Expert Building Teams
Two additions to a community hospital in Ohio that will double its square footage. A 12-story addition on top of an existing 12-story tower at Houston's M.D. Anderson Cancer Center. A $54 million renovation and addition at the University of Virginia Medical Center. A 67-bed, $70 million addition/renovation to a community hospital that is only five years old.
| Aug 11, 2010
Research Facility Breaks the Mold
In the market for state-of-the-art biomedical research space in Boston's Longwood Medical Area? Good news: there are still two floors available in the Center for Life Science | Boston, a multi-tenant, speculative high-rise research building designed by Tsoi/Kobus & Associates, Boston, and developed by Lyme Properties, Hanover, N.
| Aug 11, 2010
3 Hospitals, 3 Building Teams, 1 Mission: Optimum Sustainability
It's big news in any city when a new billion-dollar hospital is announced. Imagine what it must be like to have not one, not two, but three such blockbusters in the works, each of them tracking LEED-NC Gold certification from the U.S. Green Building Council. That's the case in San Francisco, where three new billion-dollar-plus healthcare facilities are in various stages of design and constructi...
| Aug 11, 2010
Holyoke Health Center
The team behind the new Holyoke (Mass.) Health Center was aiming for more than the renovation of a single building—they were hoping to revive an entire community. Holyoke's central business district was built in the 19th century as part of a planned industrial town, but over the years it had fallen into disrepair.
| Aug 11, 2010
Right-Sizing Healthcare
Over the past 30 years or so, the healthcare industry has quietly super-sized its healthcare facilities. Since 1980, ORs have bulked up in size by 53%, acute-care patient rooms by 77%. The slow creep went unlabeled until recently, when consultant H. Scot Latimer applied the super-sizing moniker to hospitals, inpatient rooms, operating rooms, and other treatment and administrative spaces.
| Aug 11, 2010
Great Solutions: Healthcare
11. Operating Room-Integrated MRI will Help Neurosurgeons Get it Right the First Time A major limitation of traditional brain cancer surgery is the lack of scanning capability in the operating room. Neurosurgeons do their best to visually identify and remove the cancerous tissue, but only an MRI scan will confirm if the operation was a complete success or not.
