Boston – October 21, 2026 -- Health systems are hunting for abandoned pharmacy locations and retail end caps to convert into outpatient clinics, while shifting toward ownership of core real estate in proven markets, according to takeaways from Colliers' annual National Healthcare Conference held October 8.
The event drew brokers, health system executives, developers and investors. Hall Render shareholder Andrew Dick presented on emerging trends in health care real estate. Two other sessions covered provider portfolio strategy and the economy.
Providers prioritize retail locations to meet patients where they live
Provider panelists said they are focused on finding the right location for outpatient services, with retail settings where patients can receive care and grab lunch in one trip seen as ideal. Patients continue to rank location and convenience as their top reasons for choosing an outpatient facility. Quality of care matters but is often cited as a lower priority.
Health systems prefer owning core assets and leasing in untested markets
Providers want to own core real estate in proven markets. In new markets, they are more willing to lease until the business case supports a long-term presence, then buy or build. For non-profit providers, ownership creates a path to a property tax exemption that can significantly reduce operating costs. Lower operating costs and difficult landlords were cited as the main reasons for preferring ownership.
Per-location financial performance drives closures and consolidation
Providers said they track financial performance by location and are doing more with less space. Underperforming sites are more likely to be closed or to have services consolidated into a more profitable service line. Every location is monitored for financial performance and overhead.
Workforce shortages constrain expansion plans
Declining birthrates, an aging population and stricter immigration policy are shrinking the pool of available workers. Providers can identify new markets and clinical growth opportunities, but staffing them will be difficult in the near term.
Workplace location and amenities influence clinician job decisions
Clinical providers cited workplace location as an important factor in accepting job offers. They also want facilities that have, or sit near, restaurants, retail and fitness centers, along with modern design and workflow. These factors will not offset poor workplace culture or low compensation.
The provider panel was led by Kristin Blount of Colliers and included executives from Lurie Children's Hospital of Chicago, Ascension, UC Irvine, Beth Israel Lahey Health and UC Health (Ohio). Colliers National Director of Research Steig Seaward led the economic session, titled "What a Bifurcated Economy Means for Healthcare Real Estate."