The passage of the Affordable Care and Patient Protection Act earlier this month has had no shortage of loud opinions across party lines. Whether drawn in praise or contempt, many people are now asking the question of “how will this affect me?”

Commercial Real Estate faces its own set of benefits and challenges as the new healthcare bill awaits implementation. While the true impact of this act cannot yet be judged, there are some known facts that play a distinct role in predicting the changes in CRE:

1. As reported by, more than $1 billion in grants has been allocated to support state readiness for the new healthcare act.

2. There will be an estimated 23 million new people on insurance.

Based on these observations and industry experience, here are my three predictions for the Act’s effect on CRE:

Increased Demand for Space

For CRE, the most apparent and widely agreed upon impact of the healthcare act is the increased need for outpatient medical office building (MOBs). The increase of Americans who are going to have insurance combined with an aging baby boomer population who accesses the healthcare system four times the amount of any previous generation, makes increased medical space a necessary asset.

Call for Updated Systems

The new healthcare act is also pushing for medical offices to update outdated paper systems of organization and management in favor of newer technology that creates a more efficient system for the larger influx of individuals. As medical offices update the technology they use to track patient records, there will be an increased need to use modern technology to manage and organize the medical buildings and their occupants. Automating and simplifying tasks such as tracking insurance plans and local and state based inspections will become more important for an updated and efficient management system.

Greater Need for Tenant Management System

Medical practitioners and offices will have less time and ability to worry about building management issues, as focus shifts to the increased demands in patient care under the new healthcare system. A great need could emerge for tenant management systems that increase the efficiency of medical office buildings and help maintain functionality with higher volumes of people.

What are your predictions?