T
he healthcare industry remains a resilient sector within commercial real estate nationwide, having weathered the pandemic and positioned itself for an innovative future. In Dallas-Fort Worth, the healthcare sector boasts an annual value of $52 billion, accounting for 15% of the region's economic activity.
However, navigating healthcare development is a complex challenge that requires significant investments of time and capital. Projects must secure approvals from internal decision-makers, hospital boards, and regulatory entities like the Texas Health and Human Services or The Joint Commission, adding layers of complexity. The high cost of capital and construction further complicates growth, making it an intricate dance for developers to balance escalating expenses against tight timeframes.
The disconnect between healthcare systems and land sellers has become strained over the past 24 months, with healthcare providers struggling to keep pace with the rapid growth of newer communities in retail, industrial, and single-family sectors. This balancing act underscores the complexity of healthcare development, where time is of the essence. Health systems can consider optimizing their real estate portfolios by selling underutilized or underperforming assets to deploy greater capital toward new projects.
Rising wages and a tight talent pool are also pressing concerns for the industry. Healthcare employment in Dallas-Fort Worth has climbed nearly 13% since 2019, with patient numbers expected to grow at a faster rate, particularly outpatient volumes, which are projected to increase over 22% by 2028. Wage growth is accelerating, placing financial pressure on healthcare systems.
According to JLL's 2024 Healthcare Real Estate Outlook report, despite a recent decline in job openings, the monthly rate of resignations remains constant, indicating an ongoing struggle to retain staff. This foundational issue could impact patient care and worker burnout, hindering the expansion of healthcare services and facilities.
The industry is also leveraging AI to enhance decision-making processes and improve the delivery of quality care. Health systems are using AI to analyze how and where a healthcare provider's time is spent, providing insights that help better plan the usage of healthcare facilities. Advancements in AI are underway to increase physician efficiency related to identifying and vetting candidates for clinical trials.
However, due to safety and regulatory concerns, the adoption of AI in healthcare will be cautious and slower compared to other industries. Engaging clinicians and facilities staff in the development and implementation of AI is crucial to ensure broad acceptance and utilization of AI tools that align with specific needs and practices.
As Dallas-Fort Worth's healthcare industry adapts to these trends, it stands poised to redefine the future of healthcare delivery in the region.
