Medical Centres
A medical centre is a healthcare facility that provides primary care and allied health services, catering to the essential medical needs of the community. These centres range from small GP clinics to large, integrated facilities housing several professions under one roof such as physiotherapists, pathologists and pharmacists.
Recent trends in
medical centre investment
The demand for medical centres has grown significantly in recent years, reflecting both demographic and social shifts. Australia’s ageing population, combined with a greater focus on preventative healthcare, has driven an increase in both the size and number of these facilities. Patients are increasingly drawn to integrated centres that combine multiple healthcare services in one convenient location.
Regional areas have also seen an uptick in demand, as population growth outside major cities fuels the need for accessible healthcare. These trends have made medical centres a resilient and high-demand asset class, often outperforming other types of commercial property during economic downturns.
What is the future of
medical centre investment?
The healthcare property market is poised for continued expansion, underpinned by a combination of demographic growth and technological advancements.
Australia’s population of over-65s is expected to double in the next 40 years, according to Treasury’s 2023 intergenerational report, placing greater pressure on healthcare infrastructure. At the same time, the healthcare sector is undergoing a digital transformation, with telehealth and advanced diagnostic tools becoming standard.
Medical centres are adapting to these changes by upgrading their facilities and incorporating technology-driven solutions. Investors who choose well-located properties that cater to these evolving needs can expect strong, long-term growth prospects.
Why buy
medical centres?
Medical centres offer a reliable income stream due to the essential nature of their services.
Unlike retail or office spaces, medical centres are less susceptible to economic cycles, as healthcare is a non-discretionary expense. Long-term leases, often secured by tenants who have invested heavily in setting up their practices, provide peace of mind for investors.
However, not all medical centres are created equal. Location is, as always, key – proximity to residential areas, good transport links and parking can all significantly impact patient numbers and tenant stability.
Similarly, the tenant mix matters, with a balanced combination of GPs, specialists and allied health providers ensuring the centre can attract a broad patient base.
Potential risks, such as vacancy periods or unexpected maintenance costs, can be mitigated by conducting thorough due diligence. Working with an experienced buyer’s agent can help you avoid costly mistakes and identify high-growth opportunities.
Key considerations when
buying medical centres
When evaluating a medical centre investment, there are several factors to keep in mind.
Demographics are a good starting point: understanding the local population and their healthcare needs will help you assess demand.
Zoning regulations can also affect your property’s potential, so ensure the centre complies with all relevant requirements.
Future-proofing is another consideration. Centres with modern facilities, good accessibility and room for technological upgrades are likely to hold their value and attract tenants for years to come. Lastly, operational aspects like layout, parking and tenant satisfaction can make a big difference to your investment’s success.
Why buy with
Costi Cohen?
Buying a medical centre on your own can be a daunting process. It’s easy to overlook critical details like lease agreements, zoning compliance or tenant quality, all of which can affect your returns. Mistakes can be costly, and the complexity of healthcare real estate requires specialised expertise.
At Costi Cohen, we make investing in medical centres straightforward and stress-free. Our team conducts detailed market research to help identify high-growth locations, so you invest in properties with strong potential. We perform comprehensive due diligence, from tenant reviews to lease terms, to safeguard your investment.
Negotiation is another area where we excel. With years of experience in commercial property transactions, we can help secure a favourable price and terms for your investment.
How to finance a
medical centre investment
Financing a medical centre can be straightforward with the right approach. Lenders typically require a deposit of 30-40%, so assessing your borrowing capacity is the first step. Preparing detailed financial documentation, including proof of income and assets, will also streamline the process.
Healthcare-specific commercial loans are available from many lenders, offering terms designed to suit the unique needs of this sector. Working with a broker can help you identify the right loan product and secure competitive rates. Costi Cohen has a trusted network of finance experts who can guide you through the process, ensuring a smooth path to ownership.
Explore some of our
Medical Centre Purchases
We would love
to hear from you
Costi Cohen — Australia’s premier commercial real estate consultants
Whether you’re a seasoned investor or new to the market, our expertise will pave the way for your success in commercial real estate. We’ve looked after more than 250 commercial properties and are prepared to help you discover your next investment opportunity.
No matter your timeline, budget or preferred location, the expert team at Costi Cohen can help you find a commercial property that aligns with your needs. We invite you to get in touch with our team for a consultation today.
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