Florida’s healthcare real estate market is on a remarkable growth trajectory—and it shows no signs of slowing down. With over 300,000 new residents moving to the state in 2024 alone, demand for medical facilities is soaring, particularly in thriving metros like Tampa and Orlando.

From rising rents to record occupancy rates, medical office buildings (MOBs), ambulatory surgery centers, and specialty care facilities are outperforming traditional commercial real estate assets. In fact, MOBs in Florida are currently averaging a 94% occupancy rate, with rents up 23.5% over the past five years.

Let’s break down what’s fueling this boom—and why Tampa and Orlando are at the center of it all.

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Tampa: Florida’s Healthcare Real Estate Powerhouse

Tampa has emerged as a hotspot for healthcare development, thanks to its fast-growing population, strong healthcare systems, and strategic location in Central Florida. With over 51,000 new residents added between 2022 and 2023, the city is seeing a surge in demand for medical services—and developers are taking note.

Major Developments in Tampa

• Tampa General Hospital Expansion: TGH is aggressively expanding its real estate footprint, recently acquiring a 14,315-square-foot MOB in Historic Hyde Park for $9.1 million.
• Veteran-Focused Care: TGH also opened a specialized Military & Veteran Primary Care Center on S. Lois Avenue, offering services from behavioral health to lab testing.
• Onicx Group Growth: This Tampa-based firm has been expanding its portfolio across state lines, recently acquiring its third medical facility in six months. Their activity showcases how Tampa’s expertise is shaping national healthcare investment strategies.

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Orlando: Investing Big in Healthcare Infrastructure

Orlando’s healthcare real estate market is equally active, driven by robust population growth and strategic healthcare investments.

Orlando Highlights

• $750M Investment by Orlando Health: The health system is expanding into Brevard County with plans for a new hospital, freestanding emergency departments, and additional physician offices.
• Portfolio Expansion: The Orlando Health – FMC Portfolio, totaling 89,500+ square feet across four properties, signals growing investor appetite for healthcare properties aligned with large systems.
• Population Growth: With 55,000+ new residents in 2022–2023, Orlando continues to offer long-term demand for healthcare facilities.

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Why Investors Are Targeting Florida’s Healthcare Sector

Florida presents a perfect storm of investment opportunity when it comes to healthcare real estate:

• Strong Demographic Tailwinds
  • The 65+ age group, which drives the most healthcare demand, is growing rapidly.
  • Migration from high-cost cities is feeding sustained population growth.
• Resilient Asset Class
  • Healthcare real estate has historically outperformed during downturns.
  • Occupancy and rental rates remain strong even amid economic uncertainty.
• Health System Expansion
  • Institutions like TGH and Orlando Health are actively acquiring and building, creating new partnership opportunities for developers.
• Tech-Forward Facilities
  • Demand is rising for facilities that support telehealth and integrated technologies.

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Challenges Developers Must Navigate

Despite the strong fundamentals, the road to successful development in Florida’s healthcare market isn’t without bumps:

• Rising Construction Costs: Permitting activity declined for two consecutive years (down 9.7% in 2022 and 7.2% in 2023), largely due to labor and material shortages.
• Insurance Pressures: Natural disaster risks in Florida, especially hurricanes, are increasing insurance costs—particularly in coastal areas.
• Infrastructure Strain: Rapid population growth is stretching utilities and transportation systems, affecting site selection and project timelines.

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Trends Shaping the Future

Looking ahead, here are four trends shaping the future of healthcare real estate in Tampa and Orlando:

1. Outpatient-Centered Development
   Facilities focused on outpatient services and same-day care are becoming key assets.
2. Mixed-Use Healthcare Hubs
   Developers are blending healthcare, retail, and residential spaces into community-integrated projects.
3. Adaptive Reuse of Office Space
   With many traditional offices underutilized, there’s a growing push to convert them into modern healthcare spaces.
4. Sustainability Matters
   Environmentally efficient designs are gaining traction with both providers and patients.

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Final Takeaway

Florida’s healthcare real estate market is thriving—and Tampa and Orlando are leading the charge. For developers and investors seeking stable, long-term opportunities, this asset class offers strong fundamentals, resilient returns, and community impact.

As healthcare continues to evolve, real estate players who can balance innovation with local needs will be best positioned to thrive in this dynamic and high-growth sector.

Source:  Carabobo 24