For the healthcare real estate sector, “2025 has really been a tale of two halves,” said Justin Shepherd, vice chairman & co-head U.S. Healthcare Capital Markets at Newmark. “I think the first half coming out in “Coming out of January, there was a lot of optimism. We were thinking rate cuts then. We obviously didn’t get them as quickly as we expected.”
Speaking on the “State of the Market” panel at Connect Healthcare Real Estate 2025 in Irvine, Shepherd said that as the year winds down, “There’s a lot of portfolios on the market, a lot of scale on the markets. And you’ve certainly seen the markets respond accordingly. So I think the back half will make up for what our 2025 view was in totality.” He predicted “a real push” between now and Dec. 31.
For Perkins&Will principal Chris Connell, the wind-down of 2025 means “a fairly steady, positive trajectory that probably belies the slightly rocky road that we’ve had below the surface to get there. I think there’s been less predictability this year than expected. That’s probably fair to say. But all in all, I think we’re coming out of it fairly well.”
That being said, Big Sky Asset Management founder and CEO Jason L. Signor noted that while his company’s portfolio has performed solidly this year, from a capital markets perspective, activity is “still fairly muted globally, especially in the core-plus sector,” which represents the lion’s share of medical office and other healthcare-related properties.
“And unfortunately, other product types are taking precedence over medical today for the return risk spectrum. So that’s been really tough. And what we’ve done is gotten a lot more flexible in how we raise money.”
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