What We Heard: NYC Healthcare Real Estate Summit

The RDM team was in attendance at Bisnow's 3rd Annual Healthcare Real Estate Summit, where industry leaders discussed the impact of the medical field in the greater New York City area.

The panel featured executives from New York Presbyterian, Mt. Sinai, North Shore LIJ Heath System, Array Architects, Simone Healthcare Development, William Macklowe Company, Cauldwell Wingate, Health Care REIT and Cushman & Wakefield.

The first panel group discussed the Development & Design of medical space and its effect on real estate:
• The Affordable Care Act (ACA) has set in place cost restrictions for healthcare development.
• The hospital sector is stronger and more competitive than ever before in NYC.
• Healthcare has become more "retail focused".
• Kent Doss (Array Architects) says his firm puts significant amount of due diligence into understanding a community before implementing design
• William Macklowe (William Macklow Company) spent past year looking to buy downtown; he sees Class B office market as a commodity in the downtown area.
• Macklowe says he saw 156 William as an opportunity to differentiate as healthcare play.
• Mike Noto (Health Care REIT) sees healthcare design as more patient-centric today.
• Re-purposing to  become a specialty hospital is more profitable- surgery makes money, medicine doesn’t.
• The "Baby boomer" generation will have higher expectations for healthcare
• Macklowe has seen a huge dynamic shift in Manhattan from healthcare to office space to neighborhoods.

The second panel discussed the Hospital Systems:
• Scott Mason (Cushman & Wakefield) believes the regulatory environment in NYC is more challenging compared to the rest of the country. The inventory of medical assets will see dramatic change.
• Sharon Greenberger (NY Presbyterian) focuses on patient thru-put. This is a challenge with older facilities.
• Thomas Ahn (Mt. Sinai) is looking to expand patient facilities that will better follow people’s health needs through their lifetime.
• Greenberger says infrastructure costs end up consuming most of the available funds.  Questions how to find different ways to find infrastructure.
• Mason believes real estate is a huge component of healthcare’s balance sheet.
• Greenberger said NY Presbyterian is building new ambulatory care centers to incorporate new technology demands.