The Evolution of Healthcare Real Estate

Written by Kelsey Stanger

February 10, 2025

Business News

Healthcare real estate is rapidly evolving, shaped by shifting patient needs, technology, and changes in service delivery. Since the global pandemic, medical spaces have undergone significant transformations, prioritizing flexibility and efficiency. Today, healthcare providers are rethinking everything from location strategies to office layouts, ensuring they can adapt to the demands of both patients and practitioners.

As the sector continues to evolve, several key trends are driving change:

Convenience-Driven Locations

Healthcare facilities are increasingly moving beyond traditional medical buildings and into retail and office spaces. This shift enhances accessibility, offering patients more convenient locations and flexible service models. According to JLL’s 2024 report, Healthcare Industry Embraces Shift to Outpatient Care Sites, outpatient services are now found in hospitals, office buildings, and even retail centers—making healthcare more integrated into everyday life.

Harrison Healthcare Centre Photo - 500 – 1280 Burrard Street, Vancouver
Harrison Healthcare Centre located at 500 – 1280 Burrard Street, Vancouver offers preventative and personalized healthcare services in an accessible office location. (Photo: Culter)

To Lease or To Own?

More healthcare professionals are shifting from leasing to owning their office spaces. While the upfront investment is significant, the long-term financial benefits are increasingly clear. RBC’s Leasing vs. Buying Medical Space resource notes that for professionals occupying a space for at least ten years, ownership is often the more cost-effective option. Beyond financial savings, owning real estate provides stability, potential appreciation, and equity accumulation—a valuable asset for retirement planning. As medical equipment depreciates more quickly than ever, real estate ownership offers a solid, long-term investment for healthcare providers

AI-Powered Efficiency & Vancouver’s Jane App

Artificial intelligence is transforming healthcare office operations, streamlining administrative tasks, optimizing staffing needs, and enhancing patient interactions. Vancouver-based Jane App, a leading healthcare practice management software, is a prime example of this shift. Initially built for allied healthcare providers, Jane has evolved to include AI-powered scheduling, automated charting assistance, and predictive analytics, reducing admin burdens and improving patient care workflows. AI-driven tools like Jane are reshaping how medical offices function, reducing wait times and improving overall efficiency.

Jane App Photo - iPad Online Booking
Jane App now provides AI-powered scheduling, automated charting assistance, and predictive analytics, reducing admin burdens and improving patient care workflows. (Photo: Jane App)

The Shift to Virtual & Outpatient Care

Hybrid healthcare models—combining in-person and virtual consultations—have become a lasting post-pandemic trend. During COVID-19, up to 70% of healthcare services were provided via telehealth, and even as of mid-2024, telehealth still accounted for 25% of all medical visits (Forbes, 2024). This ongoing demand is driving the expansion of outpatient services and satellite clinics, offering more flexible and accessible care options.

Rising Demand for Fertility Clinics

With the province of British Columbia introducing publicly funded IVF treatments in April 2025, demand for fertility clinics is expected to rise. The program will cover one cycle of IVF for eligible residents, making fertility services more accessible and increasing patient volume at clinics across the province. However, this surge in demand presents significant real estate challenges. Fertility clinics require specialized infrastructure, including high-tech labs, regulatory-compliant facilities, and controlled environments—all of which come with substantial upfront costs. Additionally, as the government refines eligibility and service delivery guidelines, clinics must stay adaptable to align with evolving regulations. While this funding initiative opens new opportunities for clinic expansion, operators will need to strategically plan for growth while managing the financial and logistical hurdles of specialized medical real estate.

IVF Lab Photo
With a British Columbia introducing publicly funded IVF treatments in April 2025, the demand for fertility clinics is expected to rise. (Photo: Olive Fertility)

The Growth of Wellness & Integrative Health

Demand for integrative healthcare is rising, with more patients seeking a blend of traditional and alternative therapies. Over the past two decades, adoption of complementary healthcare in the U.S. has increased by approximately 18% (National Institutes of Health, 2024). This trend is driving the expansion of wellness-focused medical spaces, from multidisciplinary clinics to holistic treatment centers.

Looking Ahead

Healthcare real estate is at a pivotal moment, with professionals reassessing their space needs to align with these ongoing shifts. As the industry moves toward greater convenience, efficiency, and flexibility, the next few years will shape the future of medical real estate. It’s a sector to watch closely.

Note: This post references industry reports and emerging trends; however, certain projections and interpretations are subject to change. Readers should verify details and consult professionals for investment or real estate decisions.

About the Author

Kelsey Stanger

Kelsey Stanger

Kelsey Stanger brings over 15 years of commercial real estate experience to her role at Floorspace. With a career that spans both office and industrial sectors, she has contributed to some of Vancouver’s most notable transactions – first through strategic marketing and execution roles, and now as a broker. As part of the founding team…

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