What happens to nearby property values when a new hospital is built? Usually the surrounding area feels a ripple effect. No matter how old the buildings that surround a new hospital complex are, land values increase. Developers are quick to provide new space for offices and stores. The biggest profits are realized by the investors who get involved early (during the planning stages) before or while the hospital is being built.
As a new hospital is being built, the surrounding area around it will began to improve by demolishing older building and revamping existing buildings to create ancillary businesses. Among the new activities that create an abnormal demand on land located near the hospital are:
• Physicians offices.
• Walk-in clinics.
• Medical supply companies.
• Residential apartments for hospital employees.
• Physical Therapy center.
• Day Care centers.
• Long-term care facility
A few decades ago when doctors regularly made house calls, hospitals were isolated structures and viewed as “places to rest”. Now, however, doctors prefer to locate their offices near the hospital. The whole area begins to boom with ancillary services that are both directly and indirectly related to health.
There is often a need to expand the medical facilities at existing hospitals to handle a growing population and larger numbers of senior citizens. Land prices can soar when the hospital decides to buy nearby land for expansion. Watch for it, the alert investor can again have an opportunity for profits.