COVID Forces Companies to Reconsider Leasing Vs Owning Buildings

More companies are considering leasing new properties in the future as COVID makes an impact on real estate. 

By HFT Staff


In a survey of healthcare professionals on their real estate priorities conducted by Ryan Companies US Inc., 70 percent of respondents indicated they are considering leasing instead of owning in the future. As COVID-19 continues to make an impact on healthcare, leasing provides more flexibility with real estate dollars. 

Nearly one in five respondents cited putting COVID-19 relief funds toward remodeling or renovating as they grapple with historic staffing shortages, changing technology and consumer preferences. These results suggest that organizations are more inclined to invest in existing facilities rather than building new inpatient facilities, which only 5 percent of respondents indicated they would consider. 

Of the 70 percent that indicated they would consider leasing over owning, 40 percent said “somewhat likely,” 17 percent said “likely” and 13 percent said “very likely.” Examining the results even further, respondents were grouped according to their organization type. The first group consisted of hospital, health systems and medical clinic respondents. The second group consisted of senior living, insurance company and other respondents. While the first group was more neutral, the second group leaned more heavily on “likely” and “very likely” to lease. While there are varying perspectives among the groups, the commonality is the ability to test or expand into new markets with the spending flexibility that comes with leasing. 



July 21, 2022


Topic Area: Industry News , Maintenance and Operations


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