Nuveen argues the next phase of commercial real estate recovery is increasingly centered around demographic-driven sectors like senior housing and medical outpatient facilities.
- Global private real estate returns have now been positive for seven consecutive quarters after two years of declines.
- Demand for medical outpatient space continues to outpace supply, supported by the long-term shift from inpatient to outpatient care.
- Americans aged 75+ are projected to grow 68% between 2024 and 2040, dramatically increasing healthcare and senior housing demand.
- Senior housing construction pipelines remain at decade lows while rents continue rising above 4% annually.
The office boom defined the last real estate cycle. The next one may increasingly be shaped by aging populations rather than downtown commuters.