6/24/2019 | By Nareit Staff
Jeffrey Busch, CEO of Global Medical REIT (NYSEMKT: GMRE), joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.
Busch said because Global Medical REIT has single tenant triple-net leases, good underwriting can ensure the company maintains 100% occupancy in its medical real estate. He said the REIT is in the “right industry right now,” as he expects the demand for medical office buildings and health care to increase.
“Medical office buildings are a terrific investment,” Busch said. “There is a tremendous growth in the health care industry of baby boomers who are now aging and need much more medical care.”
Regarding competition for acquisitions, Busch said Global Medical REIT has a very specific niche and that it looks outside of the main markets that are crowded with 30 or 40 bids for the same building.
“We’ll go to the secondary and tertiary [markets], buy good health care properties in those areas, and get a better return,” he said. “We tend to get about a 7.5 cap rate, while others in the market are getting close to 5.5 cap rates.”