Why Healthcare Real Estate Outperformed in 2022 and Beyond
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August 29, 2025
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In 2022, while many real estate sectors were grappling with inflation, interest rate hikes, and economic instability, healthcare real estate remained remarkably resilient. According to the CBRE U.S. Healthcare and Life Sciences Report (2023), medical office buildings (MOBs) experienced record low vacancy rates of around 8%, coupled with steady demand from providers and operators expanding outpatient care models.
Similarly, the Cushman & Wakefield 2023 Healthcare Market Outlook noted that institutional investors increased their allocations toward healthcare real estate by over 18%, favoring it over retail and even some industrial assets. The key drivers? Demographic trends (aging population), decentralized care models, and essential tenant use. Healthcare properties—especially those with long-term, triple-net leases—offered both stable returns and insulation from economic swings.
Fund Momentum’s focus on mixed-use developments anchored by urgent care centers, specialty clinics, and medical offices puts investors in the center of this strong-performing sector.
“Healthcare real estate has become a magnet for long-term capital because it delivers where others can’t: low volatility, high occupancy, and consistent community value.” —CBRE U.S. Healthcare Report
3 Key Traits of Smart Alternative Investors
In an era where the 60/40 portfolio model is losing relevance, smart investors are rewriting the playbook. But what separates high-performing alternative investors from the crowd?
- They Think Beyond Wall Street:
Savvy investors understand that public markets are saturated and increasingly volatile. They prioritize private real estate, credit, and venture capital as diversification tools—and as paths to outsized returns. - They Embrace Passive Income & Long-Term Vision:
Instead of chasing short-term wins, they look for yield-driven vehicles like healthcare real estate with long-term leases and strong tenants. They know that time in the market beats timing the market. - They Align Capital with Purpose:
Smart investors want their money to reflect their values. They care about ESG, impact, and legacy—and they seek platforms like Fund Momentum that offer both returns and real-world outcomes.
“The most sophisticated investors don’t avoid risk. They diversify it.” —Ray Dalio
The Rise of Mixed-Use Medical Developments in America
The future of real estate is integrated, and nowhere is that more evident than in the rise of mixed-use medical campuses. These developments combine healthcare facilities with residential units, retail space, fitness, and community-centered services—all in one ecosystem.
Post-pandemic, demand has surged for care that is accessible, localized, and connected. As a result, municipalities and developers are increasingly partnering to build “health districts” that serve as regional anchors.
Fund Momentum’s flagship project in Las Cruces, NM, exemplifies this model: a medical campus combining urgent care, an 81,000 sq ft specialty building, and a walkable layout with restaurants, housing, and retail space. These developments aren’t just real estate—they’re economic engines that create jobs, attract investment, and serve growing regional populations.
“Wealth isn’t just built in Wall Street anymore. It’s built where people live, work, and heal.” —Fund Momentum Strategy Memo
