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Ukraine Conflict: Investors should move their money to safe bets

Blog, Media, Press Release, Real Estate, Real Estate Investment /

by Scott Picken, Founder and CEO of Wealth Migrate

The conflict in Ukraine has impacted all industries and, in turn, global trade and investment. Clashes such as the Russian capture of the Zaporizhia nuclear power station have had ripple effects on the world’s stock markets, with the FTSE 100 dropping by over 250 points in a single day – the biggest dip since March 2020. The turmoil has also seen the Dow Jones falling by 11% in the year to date, the S&P500 by 13.4% and the Nasdaq by 19%. With there being no end in sight to the war, it’s easy to see why investors are concerned. This is not to mention the impact it is now having on inflation, with America experiencing a 40-year inflation high in May 2022, causing further volatility in the stock market. However, it is vital that they don’t get distracted by the noise when it comes to mitigating the impact of volatility.

Markets will always be affected by current affairs, with recent events including South African prime interest rates climbing above 25% in the late-1990s; September 11; the dot com boom and bust; the global financial crisis, Brexit, and now, the Ukraine war. In turbulent times, there are three strategies investors must adopt:

Look to the long-term
What disruptive events of the past reveal is that markets move in cycles and so too do industries, assets, countries, and cities. In times like these, investors tend to struggle with analysis paralysis or take money out of the market, buying high and selling low. But investors must consider long-term cycles and trends when making decisions. What might happen in the next month, the next three months or even the next year, is irrelevant. Rather, think about the long term – the next five, 10, 20 or even 30-year cycles – to maximise that investment.

Opt for safe haven investments
When faced with uncertainty in global world economies, savvy investors make a flight towards safety by diverting capital into assets like property and gold which are safe and predictable. These assets are expected to retain or increase in value during times of market turbulence. The current crisis, for instance, has very little to no direct bearing on real estate portfolios. That said, implications of the conflict are indirect and based on broader macroeconomic impacts such as interest rate hikes. As these tend to fluctuate, again investors will need to maintain a long-term view.

Assets like property are also a hedge against inflation – another side effect of the war. This is because over time, property values tend to remain on a steady, upward trajectory and rent/income or yields are often pegged to inflation.

Moreover, a predictable income has been proven to be one of the best strategies for riding out uncertainty. Investors should opt for assets that can help them earn this – another reason why property is a preferred asset. For instance, regardless of the state of the market, people will always need places to live, buildings where they can receive medical treatment or logistic centres to service e-commerce.

Diversify
Diversification is crucial for building a portfolio that is resilient in unexpected conditions and so investors should diversify their investments across countries, currencies, and assets. US billionaire and investor Ray Dalio says investors should have 15 quality investments that are not tied together, and as long as they do that, they will reduce their risk by 80%. Plus, they’ll increase their risk return ratio by a factor of five. What this means is a very resilient investment strategy.

Technology is enabling people to diversify their portfolios more easily. Previously, investors were stuck investing in one country, in one currency and one asset. Now, with $100, ordinary South Africans can invest in 10 different deals, in 10 different assets, in 10 different countries and in many different currencies.

Uncertainty represents an enormous opportunity for investors. Investing in diversified, sustainable assets for the long term can not only help them weather any storm regardless of whether there’s another war, global financial crisis, rising inflation cycle or crypto boom and bust, but also profit once calmer waters return.

For more information, go to https://wealthmigrate.com

About Wealth Migrate
Established in 2010, Wealth Migrate is a leading FinTech real estate investment platform that helps the 99% invest like the top 1% to create more financial freedom in their lives. In so doing, the company is closing the wealth gap, brick by brick. Wealth Migrate’s mission is to put the power of smart investing in everyone’s pockets by providing people with a safe and easy way of not only investing in residential and commercial real estate markets, and alternative assets globally, but also by diversifying their investment on one platform. This is achieved through the use of technology and crowdfunding. They have facilitated over $1,2bn in deals on 5 continents and with members in 171 countries.

For more information, or to invest, go to https://wealthmigrate.com.

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Wealth Migrate: Know Your Client (KYC) Process And Its Importance

Blog, Company, Investing, Investor Basics, Knowledge Base, Portfolio, Resources, Uncategorized /

As an investor you want the peace of mind to know that any financial transactions you complete on the Wealth Migrate platform are secure and comply with all necessary legal regulations. It’s for this reason that Wealth Migrate requires you to complete the Know your client (KYC) process before you can officially start crowdfunding real estate and structured note investments online. 

KYC is an important part of the trust-building process between Wealth Migrate and its investors, as it allows potential investors to identify and verify themselves.1 This is the first step in Wealth Migrate’s due diligence process which ensures that not only do our investors have peace of mind with their financial transactions, but that Wealth Migrate is a licenced company that upholds the laws applicable to its business and investors. On behalf of the company, it also needs to ensure it’s not dealing with investors that may be involved in illegal activities such as money laundering or fraud.2 

A crucial part of this process is by aggregating our global investors into a compliant special purpose vehicle (SPV) to create an investment network. This system screens and regulates against anti-money laundering (AML) and know your client (KYC) processes upon member registration. The financial transaction system handles all payments from investors and distributions back to investors. With America’s strict countenance on counter-terrorism and anti-fraud laws, Wealth Migrate isn’t prepared to accept the risks of investors from the United States of America. 
 

Additionally, Wealth Migrate has a valid Category 1 licence (FSP 47394) as granted by the Financial Services Conduct Authority, and this licence allows Wealth Migrate to provide its crowdfunding offering on an intermediary services basis using shares as a financial product category.3 The company is therefore held liable by the Financial Services Conduct Authority for complying with laws regarding its financial transactions.  

The KYC onboarding process is therefore a significant step to reduce the potential risks for both parties and ensure that the company and its investors are interacting in a trustworthy manner.4 The company is taking due care to ensure that the potential investor is who they claim to be and is using funds obtained legally for a legitimate purpose. This also works in the favour of an investor as the company must uphold its duties and responsibilities as well as provide transparency about its business as a licenced financial services provider. 

What information is needed to KYC? 

Some basic information is needed to ensure the investor’s identity is correct such as their full name, date of birth address and identification number. The documentation for submission needs to provide proof of the person’s identity, place of residence, and the funds for investment.5 

Typical documents include:6 

  • A driver’s licence 
  • A passport 
  • An identity document 
  • Utility statements for a mobile phone, electricity, or water 
  • Rental contract  
  • Bank statements 

How to KYC on the Wealth Migrate platform 

We’ve made this process easier and simpler as all the documentation can be submitted online. Investors will firstly need to sign up and create an account on Wealth Migrate and then undergo the KYC process. Within three days from submission, the KYC Team will do a preliminary cross-reference check and provide feedback via e-mail. 

Follow these steps to achieve a successful KYC process: 

Step one: 

  1. Create your investor account – register with your chosen e-mail address and password. 
  1. Country of residence – select the country on the drop-down menu. 
  1. Select your investor category – click on the type of investor profile that suits your investment style. 

Step two: 

You will be required to upload the following documents: 

  • Two forms of identification including the front and back of:
    • a driver’s licence 
    • an ID card 
    • and/or a colour copy of your valid passport 
  • A recent proof of address, no older than three months of either: 
    • a utility bill,  
    • a rates and taxes bill or Council Tax bill 
    • a mobile phone statement 
  • Bank statements will not be accepted as proof of address 
  • A full-page bank statement, no older than three months 

Step three: 

  1. You will receive an automated e-mail once your profile has been verified. 
  1. Your KYC status will display as ‘approved’ on your profile. 

We’ve also made some visual guides available as a downloadable PDF or video to help our members with this process so that they can start investing with ease. Download our thorough step-by-step guide here for an in-depth overview of the KYC process or view our quick “How to KYC” tutorial video here. 

Explore the investment deals available on Wealth Migrate’s Fintech platform and use these visual tutorials as a guide on your wealth creation journey – click here to learn how to invest, and learn to understand and interpret your investment portfolio, here. 

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Real Estate Investments Unlock Financial Freedom

Blog, Media, Online Investment, Press Release, Real Estate, Real Estate Investment, Uncategorized /

South Africans are struggling to achieve financial freedom with 34% not having enough savings to last more than a month if they lost their income/jobsi. However, this freedom can be within reach through investing in quality assets such as real estate to build up a passive income.  

“Financial freedom means having sufficient savings, investments, and cash on hand to afford the lifestyle you want,” says Scott Picken, Founder and CEO of Wealth Migrate, a leading fintech real estate investment platform. “Simply put, it’s the freedom to choose, and a steppingstone towards this is to build a passive income which is derived from investing your money in a product that generates profits, creates stability, security, and ultimately, freedom in your financial life.” 

When it comes to ways that people have been supplementing their income, Picken explains that investing in cryptocurrency such as Bitcoin has been rising over the past couple of years. “It is important to note that although you can secure a triple return on investment, the only way to get your money out is to sell.”  

He points out that real estate is one of the tried and tested investment vehicles through which people can earn a passive income. “In fact, 49% of the world’s wealth is held in property where people not only create their wealth but protect it too. However, only 12% of the global population has access to residential real estate and less than 1% has access to commercial property, which is where the real wealth is.” 

“It is for this reason that Wealth Migrate has reduced its minimum investment fee from $100 (approximately R1,570) to $10 (approximately R157) to give more South Africans greater access to the global real estate market,” says Picken.  

To assist new investors to get their foot in the door and work towards financial freedom, he shares six steps to real estate investing:  

  1. Belief: Henry Ford has been quoted as saying ‘whether you think you can, or you think you can’t – you’re right’. And the same applies to the belief that investing will help you find financial freedom. 
  1. Knowledge: The next step requires the investor to do research and to learn about the properties in which they would like to invest.  
  1. Accessibility: This refers to the action of investing – you can have all the knowledge about your desired investment, but unless you actually do something with it, it’s useless. 
  1. A system: Next, your system is what helps you manage your portfolios. 
  1. Accountability: As with anything new or difficult, the chances of doing it on your own are very small, but an accountability partner can help. 
  1. Results: This is the profits from your investment. If you want to get wealthy, you’ve got to get results.   

“Potential investors often believe this is a linear progression, but in fact it’s spiral, because once the results of your investment have been realised, you can go back to step one and reinvest all over again with a strengthened belief. I call this an upward spiral,” explains Picken. 

“The challenge is that it works the opposite way too,” he says. “A downward spiral exists because if the belief, knowledge, access, a system, and accountability are not there then you get no results. No one learnt to walk by reading a book, they did so through action, and I believe that the same applies to achieving financial freedom.” 

Picken shares that wealthy people prosper due to the habit of consistent investing. “Our philosophy is that, by dropping the minimum investment from $100 to $10, we can give a lot more people the opportunity to participate in the property market and start their journey to financial freedom. Over and above accessibility, we are giving them the ability to diversify their investment, enabling them to invest in 10 deals and assets across various countries and currencies.” 

He adds that by lowering the minimum investment fee, this also gives investors the opportunity to reinvest what they earn from their investments more easily.  

“To achieve financial freedom, South Africans need to take action and invest. Now is the time to take the next step,” concludes Pickens.  

The minimum investment fee will be $10 only until the end of May 2022. For more information, or to invest, go to https://wealthmigrate.com.  

About Wealth Migrate 

Established in 2010, Wealth Migrate is a leading fintech real estate investment platform that helps the 99% invest like the top 1% to create more financial freedom in their lives. In so doing, the company is closing the wealth gap, brick by brick. Wealth Migrate’s mission is to put the power of smart investing in everyone’s pockets by providing people with a safe and easy way of not only investing in residential and commercial real estate markets globally, but also by diversifying their investment. This is achieved through the use of technology and crowdfunding. For more information, or to invest, go to https://wealthmigrate.com.  

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Global Wealth Group and Wealth Migrate: Business Growth and Scaling

Blog, Investing, Online Investment /

Written by: Mariken Jansen van Vuuren, Head of Marketing at the Global Wealth Group and Wealth Migrate.

Amazon needs no introduction, their CEO and founder, Jeff Bezos, created a popular growth strategy called the “flywheel.” Based on the core concept of a virtuous cycle, a flywheel takes a lot of effort to move initially, but once it starts, it gains momentum and quickly spins faster.


To grow and scale both the Global Wealth Group and Wealth Migrate business, we decided to map out our own virtuous cycle with guidance from the Amazon archetype. We looked at how our virtuous cycles turn, what the various sequences look like, and how we move our different drivers to create unstoppable momentum.

The Global Wealth Group (GWG)
We make primary market investments in alternative assets accessible to anyone, anywhere, from any amount, enabling investors to safely invest and diversify globally, using technology such as collaborative SMART investing. Our meta-marketplace offers B2B and B2C opportunities for investors to crowdfund property. This unique solution provides access to digital wallets and enables people to invest in global property opportunities across the globe and alternative assets. We focus on bringing international opportunities to clients in emerging markets.

Global Wealth Group’s virtuous cycle

WealthPoint – platform as a service technology
Our starting point is our WealthPoint technology, which powers our meta-marketplaces. Wealth Migrate is our flagship platform and our proof of concept, while WealthPoint provides a white label solution to property partners, financial planners, institutions and strategic partners in both genre and geography sectors. We build on the significant demand and distribution for supplying the same products across various active marketplaces.

Active marketplaces
We have partnered with entrepreneurs who built their marketplaces on our technology. These partnerships along with an increase in transactions on their platforms lead to increased revenue for our business. So far, our meta-marketplaces extend to Wealth India, Wealth China, Wealth RSA, Wealth UK, Wealth Australia, Wealth America, Wealth Europe, Women and Wealth, Shariah Wealth, Wealth Create, and our flagship company Wealth Migrate. We are looking to grow this further in region and genre for a more robust diversification. Our active partners made us realise the importance of cultivating an entrepreneurial community.

Entrepreneurial community
Seeing our Wealth Point technology as a starting point and Wealth Migrate as our proof of concept, we have extended our entrepreneurial community, adding value to entrepreneurs and our business.

We are developing various personalised content touchpoints for our active partners. We are also in a unique position to have our partners contribute to content in webinars, articles, and success stories. This type of organic and paid content becomes a powerful touchpoint in a potential investor’s conversion journey, leading to more transactions for all marketplaces powered by WealthPoint.

More transactions
More transactions mean more revenue for our business. An increase in transactions on various active marketplaces using WealthPoint allows us to negotiate better partnership deals for investors on multiple platforms. Thanks to a growing demand for active deals, we’ll see increased traffic to the various marketplaces. This will gain momentum and lead to a more attractive option for future active partners, allowing us to sign up for new active partners and to diversify our marketplace offering even more. An increase in deal demand and a variety of deals hosted on our Wealth Point technology will help us to continue growing the marketplaces that have already signed with us.

Entrepreneurial ecosystem
To expedite growth, we have started to go beyond having only an entrepreneurial community by focusing on creating an entire entrepreneurial ecosystem. We did this by developing additional support for our active partners and our marketplaces.

We created the Affiliate Boost, a semi-personalised marketing package, for entrepreneurs with an incredibly competitive fee to assist them with setting up and running their platforms, combined with the support of an experienced marketing team. Entrepreneurs have the option of various packages based on different services and pricing models tailored to suit multiple active marketplaces and different marketing needs.

Our meta-marketplaces, such as Wealth Migrate, are fundamental revenue drivers that now operate within the competitive landscape of our partner’s active marketplaces. We created a smaller marketing cycle to increase high-intent investor traffic and conversions within our entrepreneurial ecosystem. This is a prototype that can later be leveraged for additional marketplaces.

We developed Wealth Movement, a networking event allowing like-minded people to build relationships and networks while introducing them to our various offerings. From here, a potential new client can directly become an investor with Wealth Migrate.

Sometimes novice investors won’t trust their judgment or feel confident enough to make investment decisions. To fulfil that need, we started Wealth University. This allows investors to upskill, guide them to make better investment choices and teach them how to build out their portfolios using our marketplace. While attending Wealth University, we fund an investor’s digital wallet for their first investment with Wealth Migrate. Showing confidence in our product gives the investor a risk-averse first investment to kickstart their journey with us. The goal of the entrepreneurial ecosystem is to drive more traffic and transactions for our own platforms.

More traffic and transactions
High-volume traffic and many verified members on the various active marketplaces will lead to more investments in our deal. This results in higher revenue, and a greater demand for deals. In turn, it allows us to negotiate better deal partners at a higher limit deal investment with a broader deal variety that is more likely to result in consistently solid returns.

Deal demand
This will help us negotiate firm deals with strong partners to ensure deals are fully funded, and we will be able to negotiate a higher limit of investments per deal. Going back to our WealthPoint technology, strengthening our deal offering for our active marketplaces and investors will help us improve the deals offered and keep our technology competitive. As our demand for deals increases, we will provide specialised and unique deals per marketplace. We will then further add value to the various active marketplaces by helping to differentiate the deals even more. Not only will this help us grow and scale, but it will ensure we stay ahead of new competitors.

Wealth Migrate’s introduction
Our digital platform is GWG’s flagship brand and proof of concept, with a mature global meta-marketplace that offers multi-financial asset classes, global compliance, a payment system, and personalised digital wallets. Our meta-marketplace helps solve the wealth gap through accessible wealth using a safe and secure FinTech solution.

Wealth Migrate’s virtuous cycle

Meta-marketplaces and content touchpoints
Our starting point is our customers’ experience which comes down to our virtual meta-marketplaces and content touchpoints:

  • These meta-marketplaces should be easy to navigate and trustworthy. 
  • We should always have live deals customers can invest in with a good variety of deals, for example, an existing medical office building in the USA vs a co-living development in Australia
  • This content aims to educate, engage new markers, and guide funnel conversion both paid and organic.

Verified members
Increased traffic leads to verified members and, therefore, more transactions. We are implementing marketing automation to assist with down-funnel conversions and have an entire team to help new members through the verification process.

Transactions
Increased transactions are our primary goal to grow Wealth Migrate’s business. Through transactions, our business generates revenue once a new member is verified, targeted marketing has been put in place to urge them to invest. Once new members have invested, further marketing persuades them to re-invest in other deals or use the previously paid dividends for additional investments.

Supply
We are working with our holding company, Global Wealth Group, to increase supply and deals on our site by creating demand with a wider variety of investment deals.

Lower entry points
To expedite our growth, we are making our deals even more accessible with an even lower entry point. Now, we can accept deals for just under $100 (USD), but we are working to get that investment amount down to as little as $10 (USD). With a lower entry point, we will exponentially grow our number of transactions, leading to even more demand for various on-site deals.

More deals on site
As transactions increase and our success stories help to establish trust. Product trust will create demand for many more deals on our platform. As we gain our customers’ confidence and they’re able to see their wealth grow successfully, they will be compelled to invest significant amounts and start investing in a variety of deals.

Being disciplined
We realise that growth doesn’t happen by itself. To ensure we reach our growth goals and scale up our business, we’ve incorporated three disciplines within our leadership structure to keep us honest:

  • Purpose-driven meeting rhythms 
  • Clear business priorities through objectives and key results
  • KPIs (Key performance indicators) – using data and metrics to guide decision making

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Supporting B1G1 through educational initiatives

Media, Press Release /

South Africa, Cape Town. Global Wealth Group and Wealth Migrate promotes education as the way to help close the global wealth gap. Through fundraising on SEEDRS, the business joined B1G1 this year as part of its corporate social investment (CSI) goals. Founded on this simple idea in 2007, “What if every business could make a difference in their own way, just by doing what they normally do?”, B1G1 has now become a global movement. It has created a network of businesses that contributes to good societal causes with over 500 high-impact projects. 

With eight categories of projects from the environment to health or shelter and food, Global Wealth Group chose its main cause as education. SEEDRS investors are giving back to the global communities by associating with B1G1, which has multiple projects that uplift children’s lives and provide educational services to communities that are in need.  

Scott Picken values this CSI initiative and as the founder and Chief Executive Officer of Global Wealth Group he believes, “Quality education is one of the most powerful and proven vehicles to achieve sustainable development. It improves health and livelihoods, as well as contributes to social stability. That is why quality education is one of our global goals.” 

As per their benefits sheet, The Global Wealth Group and Wealth Migrate will donate a certain number of days to the education of children across the world based on the amount of investment they receive. Together they have pledged to pay at the end of the Seedrs raise. They are also able to send each investor that contributes a certificate detailing how many days of education they have gifted through this campaign. At the end of the raise B1G1 will issue the Global Wealth Group with a certificate with the number of days contributed to education, the total amount donated along with their gifting story.  

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Wealth Migrate and Clem Sunter’s exclusive investment planning webinar

Media, Online Investment, Press Release, Uncategorized, Webinars /

Cape Town, South Africa. In an exclusive webinar on global and local investment planning, Wealth Migrate CEO Scott Picken, played host to acclaimed scenario planner Clem Sunter on 18 August 2021. 

During this pre-recorded interview, Sunter identifies global and South African scenarios that could affect future investments. In particular, the flags to be aware of in assessing potential risks and opportunities, and he answers a few key questions from online viewers.

His most recent book co-authored by Mitch Ilbury, Thinking the Future: New Perspectives from the Shoulders of Giants, continues this futurologist theme on adaptable decision-making in a complex digital world. Published only in July 2021, this book has proven to be popular and is available in print and as a Kindle eBook.

Since the 1980s, Sunter has put together many possible scenarios for presentations as a keynote speaker in Europe, Asia, and Africa. He continues this legacy of exploring future possibilities as a prolific author of at least 17 books. In 2001, The Mind of a Fox, co-authored by ChantellIlbury, accurately captured the possible terrorist scenario of the 9/11 attacks on United States soil.

Sunter’s authority on scenario planning began when he was appointed to the positions of chairman and CEO at Anglo American’s Gold and Uranium division in South Africa. His primary responsibility was to head its scenario planning unit and guide its business strategy to mitigate risks.

For more information, view the webinar here.

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Industry snapshot – a look into medical buildings

Asset Class, Medical Buildings, Real Estate, Real Estate Investment, Uncategorized /

We’ve collated an overview of different viewpoints on medical office buildings (MOB) investments to provide a balanced perspective to potential investors. Look out for our upcoming industry report on medical real estate. Click below to register for the alert, and we’ll send it out when our industry report is available for download.

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Medical office buildings: asset class 

Think of upward growth in recent years followed by increased demand for outpatient services, including a consistent and robust performance. That’s one of the many reasons why the medical office buildings (MOBS) asset class remains a popular choice for investors. A subset asset class,1 MOBS are featuring strongly in investment portfolios of experienced real estate investors as global healthcare demands increase. This asset class has evolved to cater for tenants in the medical field to consult with patients and perform various surgical procedures.  

In this article, we examine the opportunities for investing in medical office real estate and how this asset type is maintaining its strong performance during the COVID-19 pandemic. 

Medical buildings perform well 

According to EquityMultiple, “compared to other asset classes, and the overarching office class specifically, MOBS generally exhibit uniquely steady long-term occupancy rates.” 2 CBRE’s 2019 Healthcare real estate investor and developer survey revealed that 99% of commercial real estate (CRE) firms in 2018 and 2019, found the occupancy of their medical office portfolios either remained stable or increased.3 The growth of MOBS has been significant as can be seen in the graphs below.  

EquityMultiple also found the average rental price for 2018 jumped to $23/SF, amounting to a staggering 1.4% yearly increase.4 

Outpatient healthcare 

Outpatient healthcare is simply services outside of a hospital, from a clinic to a private practice that includes the diagnosis, observation, consultation, treatment, intervention, and rehabilitation of medical conditions.5 The advancement of medical tech has enabled clinical innovation and more specialised treatments. 

These EquityMultiple statistics reveal the upwards growth curve for outpatient healthcare services:6 

  • The number of outpatient centres across America increased 51% from 2005 to 2016, with no signs of this slowing down 
  • To keep up with the demands of local healthcare, MOBS are being rapidly developed 
  • 2019 was a pivotal year for MOBS in Chicago, Cleveland, the Inland Empire region, and Atlanta, as these regions reflected the most growth 

Healthcare services and the effect of COVID-197 

Access to healthcare is a significant need for all. Telehealth has been viable alternative to traditional medical services during COVID-19, but doctors can’t practise all branches of medicine effectively with only virtual patient check-ups. While COVID-related closures have affected the healthcare industry, there will no doubt be a surge in services, due to patients that need basic and specialised treatments during and after the pandemic. Patients diagnosed with hypertension, diabetes and diabetes-related complications, cancer, and cardiovascular conditions have suffered from a lapse or lack of healthcare services since the COVID-19 pandemic.8 

The challenges of investing in medical office building assets9 

Before we look at the challenges of investing in medical office building assets, it is important to understand what type of medical office buildings we’re referring to as assets. 

HBRE, a healthcare real estate firm has a clear understanding of the MOB sector: 

  1. Hospital campuses – by necessity are large spaces that are costly, as various equipment and machinery need to be on for the hospital to function. These facilities also need a secondary power source for emergencies and specific requirements for plumbing, electricity and so on, to accommodate the many people that use the healthcare services daily. 
  1. Medical offices – like hospitals these spaces also have the same requirements but are set to a smaller footprint. If a medical office building is more than 250 yards from the hospital, the hospital outpatient department (HOPD) can’t claim reimbursement rates. There is provision for an off-campus HOPD, but the site still needs to be within 35 miles of the main campus. 
  1. Retail medical offices – only treat patients with acute illnesses, this service is specialised and may not offer the full range of healthcare options that a hospital does. 

Global healthcare: 202210 

Deloitte’s 2022 Global Health Care Outlook focuses on six main factors that will influence health outcomes. While we acknowledge that everyone will have their own needs and services, this lends itself to the realisation that organisations in this industry must start to personalise healthcare experiences.  

We’ve included a summary of this list: 

Consumer and the human experience
Care model innovation
Digital transformation and interoperable data
Social-economic shifts
Collaboration
Future of work and talent

The model of care has changed from a focus on the physical body only to a patient’s mental state and general well-being. From using health data to track and monitor the patient’s health with their consent, to a sense of empathy in how healthcare is provided, healthcare has pivoted due to COVID-19 to include more at-home prescription deliveries, remote consultations, and digital diagnostics. IT systems that offer this convenience of real-time data offer clues to behavioural research, patient habits, and even link people to a like-minded community where healthcare organisations and companies have more access to their patients’ lives than ever before. 

Medical office building trends: America11 

America’s aging population is growing by an estimated 36% according to the CCIM Institute, and those people will need at least three times the amount of healthcare services than younger people. A new law, the Patient Protection and Affordable Care Act, also gives 32 million citizens the right to health insurance. It can be safely assumed that this will have a positive effect on job creation among health care practitioners, which would lead to growth in demand for medical office buildings. 

America is a good location for medical office buildings12 

Not only have health services have been partially or completely disrupted in many countries, but worldwide COVID-19 has also taken a physical, mental and financial toll. One thing that is clear, is the need to prioritise adequate holistic healthcare services for inpatients and outpatients alike. 

Americans’ health status has regressed over the last year as many COVID-19 survivors suffer from long-term health issues due to the pandemic. During this crisis, opportunities arose as the industry evolves towards a seamless and integrated patient-provider relationship. 

Colliers 2021 Healthcare Marketplace Report provides much-needed insight into how the MOB field is performing and where it’s doing well: 

  • The US MOB vacancy rate was 8.6% at the end of 2020, versus 7.8% in 2019 
  • In 2020, demand outpaced supply across the top 50 metro markets 
  • Average MOB triple net lease rents were $20.95 per square foot, up from $20.22 per square foot in 2019 
  • MOB deliveries in 2020 totalled 20.2 million square feet, down from 22.5 million square feet 
  • MOB sales volumes held up well in 2020, totalling $11.1 billion 

The US market clearly shows high demand, and we believe that it has strong fundamental factors supporting investment into the MOB asset class. It’s for this reason that we believe the Hamilton-Young Medical Center makes for an appealing investment. Momentum Weatherly LLC’s acquisition of it provides an opportunity to invest in an American MOB with a strong rent roll, that’s generating immediate cash flows. 

VIEW OUR MEDICAL OFFICE INVESTMENT

1 (March 2021). ‘Investing in office real estate’. Retrieved from EquityMultiple. 
2 Angelini, C. (August 2020). ‘Medical office building real estate in focus’. Retrieved from EquityMultiple. 
3 (2019). ‘2019 Healthcare real estate: investor and developer survey results’. Retrieved from CBRE. 
4 Angelini, C. (August 2020). ‘Medical office building real estate in focus’. Retrieved from EquityMultiple. 
5 Abrahams, K., Balan-Cohen, A., and Durbha, P. (August 2018). ‘Growth in outpatient care’. Retrieved from Deloitte. 
6 Angelini, C. (August 2020). ‘Medical office building real estate in focus’. Retrieved from EquityMultiple. 
7 Angelini, C. (August 2020). ‘Medical office building real estate in focus’. Retrieved from EquityMultiple. 
8 World Health Organization. (June 2020). ‘COVID-19 significantly impacts health services for noncommunicable diseases’. Retrieved from World Health Organization.  
9 (December 2020). ‘The pros and cons of each type of medical facility’. Retrieved from HBRE. 
10 (2021). ‘2022 Global health care outlook: are we finally seeing the long-promised transformation?’. Retrieved from Deloitte.
11 Wassik, P., and Carlson, D. (2022). ‘Medical office trends: hospital affiliation is a strong indicator of MOB asset value.’ Retrieved from CCIM Institute.  
12 Janus, S., Seaward S., and Larson, N. (April 2021). ’2021 Healthcare marketplace report’. Retrieved from Colliers. 

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The commercial real estate outlook for 2021 in the United States

Investing, Real Estate, Real Estate Investment, Uncategorized /

Changes to the global investment market from 2020 leading into 2021 have been affecting commercial real estate, and Wealth Migrate analised what this means for you. While the markets settle down and start returning to normal, this gives investors opportunities to make smart decisions on how to grow wealth as the economy starts to resume. [1] Globally, countries are also implementing large-scale COVID-19 vaccinations within their borders, which will assist in restoring normal activity to economic markets.[2]

We agree with Forbes that the following four main factors will be the driving force for investment strategies in this market:[3]

  • Understanding investor behaviours and reasons
  • Establishing secure building spaces — working from home became a priority due to COVID-19, resulting in more vacancies for commercial offices in high-traffic areas[4]
  • Increasing efficiency through tech — e-commerce grew exponentially during the pandemic with businesses tailoring its ”just-in-time inventory model to a just-in-case approach”[5]
  • Identifying challenges and vulnerabilities in your investment portfolio assets

Commercial real estate asset classes also differ according to location, and you should plan your investment strategy accordingly.[6] Investors looking to America can expect “a high diversity of potential outcomes in play and an outlook of a nearly 40% increase in total U.S. transaction volume according to CBRE”.[7] Knowing the latest trends and predictions for 2021, will help you decide where to focus your investment plans in the American commercial market.

Here are six emerging trends and insights you should be aware of this year:
  1. Industrial
    The increase of online shopping has driven up demand for the final distribution center to the shopper at home. Malls are being looked at to turn into potential distribution centers.[8]

  2. Hospitality
    Occupancy and revenue were hit particularly hard but are now seeing a slow recovery due to the return of travel (locally and internationally) and business conferences. Further research shows it might take up a few years for hospitality to return to pre-2019 levels.[9]

  3. Office
    The move to remote working has hit offices very hard, particularly in downtown business centers. Offices have been the hardest hit of the commercial assets during 2020, but this has given opportunistic groups looking to expand, a chance to invest in prime commercial real estate.[10]

  4. Multifamily
    Multifamily apartments have been the best performing asset during 2020 with strong occupancy and collections rates that have been helped by stimulus checks and savings. The demand for affordable financing has greatly increased for assets in this class.[11]

  5. Student housing
    Top tier campuses are absorbing students from nearby schools, causing a demand for housing. Schools have also converted on-campus housing to single occupancy, driving up demand for off-campus housing that are within walking distance of campus.[12]

  6. Medical office
    Medical buildings that have tenants offering critical care and procedures, and not optional care and procedures, should be considered. A strong location and tenants are a must, as there is a trend shifting to in-home care.[13]

These are promising signs for investments in the American commercial real estate market, and we recommend that investors choose their asset portfolio with care. In the long-term, Wealth Migrate believes that investors that have done their research will benefit from the unique opportunities in this market.

[1] Gora, B. March 2021). ”Commercial Real Estate Investing 101 in 2021′. Retrieved from Commercial Property Guide.
[2] Ventura-Rozen, G. (March 2021). ‘What 2021 Looks like for the commercial real estate market’. Retrieved from Forbes.
[3] Ventura-Rozen, G. (March 2021). ‘What 2021 Looks like for the commercial real estate market’. Retrieved from Forbes.
[4] Ventura-Rozen, G. (March 2021). ‘What 2021 Looks like for the commercial real estate market’. Retrieved from Forbes.
[5] Ventura-Rozen, G. (March 2021). ‘What 2021 Looks like for the commercial real estate market’. Retrieved from Forbes.
[6] Cambridge Associates. April 2021. ‘US real estate outlook: patience required’. Retrieved from Cambridge Associates.
[7] Cambridge Associates. April 2021. ‘US real estate outlook: patience required’. Retrieved from Cambridge Associates.
[8] Berry, J. and Feucht, K. (December 2020). ‘2021 commercial real estate outlook’. Retrieved from Deloitte.
[9] Berry, J. and Feucht, K. (December 2020). ‘2021 commercial real estate outlook’. Retrieved from Deloitte.
[10] Berry, J. and Feucht, K. (December 2020). ‘2021 commercial real estate outlook’. Retrieved from Deloitte.
[11] Berry, J. and Feucht, K. (December 2020). ‘2021 commercial real estate outlook’. Retrieved from Deloitte.
[12]  THRESHOLD Agency. (February 2021). ‘The future of student housing in a post-COVID world’. Retrieved from THRESHOLD.
[13] Eisenberg, R. (September 2020). ‘Seven urgent changes needed to fix senior living’. Retrieved from MarketWatch. 

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