This article examines the different types of preferential rights in ground leases for medical office buildings, and examines strategies in drafting preferential rights provisions to protect the interests of both ground lessors and ground lessees.  Ground leases are a popular way for hospitals and health systems (collectively, “Hospitals“) to maintain ownership and control of their hospital campus, while also allowing them expand their campuses or monetize equity tied up in Hospital-owned buildings.  Typically, a ground lessee (or, the “MOB Owner“) is either a developer of, or investor in, medical office buildings (“MOBs“) who either develops the MOB or acquires an existing MOB from the Hospital and then subleases space within the MOB to physicians, physician groups or the Hospital itself.  Under a ground lease, typically the MOB Owner holds a leasehold interest in the real property and owns fee title to the building and other improvements located thereon for the term of the ground lease, and upon the expiration of the ground lease, title to the improvements reverts to the Hospital.Continue Reading Exploring Preferential Rights in Hospital Ground Leases

The past few years have seen an unprecedented number of bankruptcies in the healthcare space, primarily from hospitals and senior living operators.  The pressure placed on healthcare operating companies will only increase as they deal with the effects of the COVID-19 pandemic and continued downward pressure on reimbursements.  As the owner of the real estate

The healthcare real estate industry finds itself in unchartered waters while grappling with the myriad issues created by the COVID-19 pandemic. Landlords are flooded with requests from tenants for rent relief as healthcare providers are facing unprecedented financial pressure during the COVID-19 crisis.
Continue Reading WEBINAR – A Look at Some Legal Implications of COVID-19 on Healthcare Real Estate

Conventional wisdom has held that the healthcare real estate industry is generally recession resistant. While that has historically been the case, the conventional wisdom did not account for a recession caused solely by a public health crisis due to a global pandemic. While the long-term effects of the COVID-19 pandemic on the healthcare real estate market remain to be seen, the short-term effects of the pandemic are already being felt throughout the industry.
Continue Reading A Look at Some Legal Implications of COVID-19 on Healthcare Real Estate

The retailization of healthcare has been a hot topic recently in healthcare and real estate industry circles alike. But what does this term really mean? From a healthcare perspective, it describes the evolution of the delivery of healthcare from a physician-centric model to a more consumer friendly, patient-centric model – much the way retail goods