The national media has declared Nashville the new “It” city, crediting the area’s unparalleled music scene, rising culinary environment, and compelling Southern culture as primary factors for the region’s growth. Evidence of the city’s prosperity can be seen in local headlines, which constantly feature stories about this new development or that multistory building groundbreaking.
Nashville’s skyline is evolving as the real estate industry works to meet the demand for an influx of new businesses and residents. According to the Nashville Area Metropolitan Planning Organization, the greater Nashville region is poised to grow to over 2.6 million people over the next 25 years. As the country’s economy continues to flounder, Nashville is fortunate to be picking up steam locally.
One of the main aspects contributing to the city’s booming economy is the healthcare industry. The Nashville Health Care Council recently conducted an economic impact study which reveals that $30 billion flows into Nashville’s economy from the healthcare sector alone. A focal point of growth within the healthcare industry is the substantial rise in outpatient care facility development.
It is estimated that by 2019, the amount of outpatient care in America will see an increase of 22 percent. The rising demand for outpatient facilities will put pressure on healthcare providers to move quickly to secure property in order to meet their growth needs. Critical to the success of delivering these projects will be healthcare providers engaging development experts to assist them in meeting their goals.
No one is more aware of the real estate frenzy than those who are currently listing properties for sale. In the current market, sellers naturally feel more emboldened to seek prices that are higher than market value, and can be more hard-fisted on key purchase agreement terms. Being approached by a physician in lieu of a developer can give the seller an opportunity to push the limits further than if they were dealing with someone who works in the industry – an advantage that can cost a physician thousands of dollars and leave them with a subpar property.
Additionally, physicians might be drawn to a specific property because it appears on the surface to be a great deal. There is a litany of reasons that could lead to a listing being significantly below market value, and the old saying — “if sounds too good to be true, then it probably is” — certainly applies to real estate.
Flood plains, wetlands, inadequate zoning, onerous easements, use restrictions, endangered species, underground fuel storage tanks, and … believe or not even live bombs on the property due to prior use as a WWII training area … can all be factors behind that “great deal” that can dupe an unsuspecting buyer. Physicians could enter into a literal minefield of issues if purchasing a property without performing the proper due diligence. A thorough vetting by experienced professionals could ensure you don’t get stuck with a property that is unsuitable for your needs.
You should be excited about the real estate windfall and subsequent economic boom that is taking place in Nashville. If you are considering an investment in a healthcare property, however, be sure to seek proper assistance in order to get the best available real estate to suit your growth needs.
Sam Sarbacker is a LEEP AP, EDAC-certified project manager for OGA, a Nashville-based real estate services and development company specializing in outpatient healthcare facilities. The company’s projects span the country and include cancer centers, medical office buildings, urgent care facilities, orthopaedic offices, behavioral health facilities and others. www.oman-gibson.com