Florida’s healthcare real estate market is experiencing unprecedented growth, driven by population increases, demographic shifts, and evolving healthcare delivery models. As one of the fastest-growing states in the nation, Florida added over 300,000 residents in 2024 alone, creating substantial demand for healthcare facilities across major metropolitan areas.
This population surge, combined with Florida’s aging demographic profile, has positioned healthcare real estate as one of the most resilient and high-performing segments in the commercial real estate sector. Medical office buildings (MOBs), ambulatory surgery centers, and specialty care facilities continue to outperform other asset classes, with medical office properties enjoying a remarkable 94% occupancy rate and rent increases of 23.5% over the past five years.
Tampa: A Healthcare Real Estate Hotspot
Tampa has emerged as a critical hub for healthcare real estate development and investment. The city’s growing population, strong healthcare systems, and strategic location have made it attractive for both developers and healthcare providers looking to expand their footprint.
Key Tampa Healthcare Real Estate Developments
- Tampa General Hospital Expansion: Tampa General Hospital has been actively acquiring medical office buildings to support its growth strategy. Recently, TGH purchased a 14,315-square-foot medical office building in Historic Hyde Park for $9.1 million, demonstrating their commitment to expanding healthcare services across prime Tampa locations.
- Military & Veteran Primary Care Center: Tampa General Hospital opened a specialized primary care center at 2106 S. Lois Ave., designed specifically for military personnel and veterans. This facility offers comprehensive services including primary care, behavioral health, laboratory testing, and pharmacy services, reflecting the growing trend toward specialized healthcare facilities.
- Onicx Group: This Tampa-based healthcare real estate investment and development firm has been expanding its portfolio, recently acquiring its third medical building in six months. Though their latest acquisition was in King of Prussia, Pennsylvania, their Tampa roots highlight the expertise being exported from Florida’s healthcare real estate sector.
Tampa’s healthcare real estate market benefits from the city’s strategic position within Florida’s growing corridor. As residents from higeases, with over 51,000 new residents in 2022-2023 alone. This migration pattern has accelerated healthcare real estate development throughout the region.
- Historic Hyde Park for $9.1 million, demonstrating their commitment to expanding healthcare services across prime Tampa locations.
- Military & Veteran Primary Care Center: Tampa General Hospital opened a specialized primary care center at 2106 S. Lois Ave., designed specifically for military personnel and veterans. This facility offers comprehensive services including primary care, behavioral health, laboratory testing, and pharmacy services, reflecting the growing trend toward specialized healthcare facilities.
- Onicx Group: This Tampa-based healthcare real estate investment and development firm has been expanding its portfolio, recently acquiring its third medical building in six months. Though their latest acquisition was in King of Prussia, Pennsylvania, their Tampa roots highlight the expertise being exported from Florida’s healthcare real estate sector.
Tampa’s healthcare real estate market benefits from the city’s strategic position within Florida’s growing corridor. As residents from higher-cost areas like Miami migrate to more affordable regions, Tampa has seen significant population increases, with over 51,000 new residents in 2022-2023 alone. This migration pattern has accelerated healthcare real estate development throughout the region.
Orlando: Expanding Healthcare Infrastructure
Orlando’s healthcare real estate market is similarly experiencing robust growth, supported by population increases and major healthcare system expansions.
Orlando Healthcare Real Estate Trends
- Orlando Health’s Massive Investment: Orlando Health recently announced plans to invest over $750 million in expanding its presence in Brevard County. This extensive investment includes constructing a new hospital, opening multiple free-standing emergency departments, and establishing new physician offices throughout the area.
- Multi-Specialty Medical Portfolio: The successful closing of the Orlando Health – FMC Portfolio, comprising four buildings totaling 89,502 square feet in the Tampa MSA, demonstrates the strong investor interest in healthcare properties associated with major healthcare systems.
- Population-Driven Development: Orlando welcomed nearly 55,000 new residents in 2022-2023, creating sustained demand for healthcare services and facilities. This population growth has positioned Orlando as a prime target for healthcare real estate developers seeking markets with long-term growth potential.
Orlando’s appeal for healthcare real estate development stems from its diverse economy, central location, and reputation as a global tourism destination. These factors have created a robust environment for healthcare providers looking to establish or expand their presence in Central Florida.
Investment Opportunities in Florida Healthcare Real Estate
For investors and developers, Florida’s healthcare real estate market offers several compelling advantages:
- Demographic Advantages
Florida’s population continues to grow steadily, with particular increases in the 65+ demographic—the age group that utilizes healthcare services most frequently. This population shift creates natural demand for medical facilities across the state, particularly in growing metropolitan areas like Tampa and Orlando.
- Strong Market Fundamentals
Healthcare real estate has proven remarkably resilient even during economic downturns. With high occupancy rates and steadily increasing rents, medical office buildings and specialty healthcare facilities continue to outperform many other commercial real estate sectors.
- Healthcare System Expansion
Major healthcare systems including Tampa General Hospital and Orlando Health are actively expanding their networks, creating opportunities for developers to partner on new facilities or acquire properties for lease to these growing healthcare providers.
- Technological Integration
Modern healthcare facilities increasingly incorporate advanced technologies, from telehealth capabilities to specialized treatment equipment. Developers who can create flexible spaces that accommodate technological evolution will find particular success in Florida’s competitive healthcare market.
Challenges in Florida’s Healthcare Real Estate Market
Despite the strong outlook, healthcare real estate developers in Florida face several challenges:
- Rising Construction Costs
The healthcare real estate sector has not been immune to broader construction challenges. Permitting activity across Florida declined by 9.7% in 2022 and fell another 7.2% in 2023, reflecting labor shortages, rising material costs, and regulatory delays.
- Insurance Considerations
Florida’s vulnerability to hurricanes and other natural disasters creates additional insurance challenges for healthcare real estate developers. The increasing costs of persistent natural disasters and consequent pressure on insurance expenses are beginning to impact development decisions, particularly in western Florida.
- Infrastructure Pressures
Rapid growth has strained Florida’s infrastructure systems, with implications for healthcare facility development. Developers must carefully consider water systems, transportation networks, and other infrastructure elements when planning new healthcare properties.
Future Outlook for Tampa and Orlando Healthcare Real Estate
The future of healthcare real estate in Tampa and Orlando appears promising, with several trends likely to shape development in the coming years:
- Outpatient Facility Growth
The ongoing shift toward outpatient care will continue driving demand for conveniently located medical office buildings and ambulatory care centers in both Tampa and Orlando. This trend aligns with healthcare providers’ goals of delivering care more efficiently while improving patient experience.
- Mixed-Use Developments
Healthcare facilities increasingly serve as anchors for mixed-use developments, combining medical services with retail, residential, and other complementary uses. This approach creates healthcare destinations that integrate seamlessly into the communities they serve.
- Adaptive Reuse Opportunities
As commercial real estate continues to evolve post-pandemic, opportunities to convert traditional office spaces to medical uses will expand. Developers in both Tampa and Orlando are exploring creative adaptive reuse strategies to transform existing properties into state-of-the-art healthcare facilities.
- Sustainability Focus
Environmental considerations are becoming increasingly important in healthcare real estate development. Properties designed with sustainability features not only reduce operational costs but also appeal to environmentally conscious healthcare providers and patients.
Conclusion
Healthcare real estate in Florida, particularly in the growing markets of Tampa and Orlando, represents a compelling opportunity for developers, investors, and healthcare providers. The combination of population growth, demographic advantages, and evolving healthcare delivery models creates a strong foundation for continued development in this specialized real estate sector.
As Tampa and Orlando continue to expand, healthcare real estate will play a crucial role in supporting community health while offering attractive investment opportunities for forward-thinking developers. Those who can navigate the challenges of construction costs, regulatory requirements, and infrastructure limitations will find substantial rewards in Florida’s dynamic healthcare real estate landscape.
For Tamap real estate developers looking to diversify their portfolios or specialize in a resilient asset class, Tampa and Orlando’s healthcare real estate markets offer promising pathways to sustainable growth and community impact.
