Recent trends in healthcare & Real Estate?
O
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(Baboon, 136
Points)
on 2/11/10 at 5:00pm
Have interviews with both these groups. I was wondering if anyone could point me in the direction of broad trends in these two industries that I could further research.
For example, I know one in healthcare is you have these large pharmas acquiring smaller ones because they're having issues developing drugs of their own and they find it easier just to acquire other smaller pharmas with products already in the pipeline.
Could use more for healthcare since that's my preference and then I'm totally clueless when it comes to real estate.





For Healthcare, be prepared
For Healthcare, be prepared to discuss how upcoming legislation could affect different subsectors (pharma, insurance, biotech, managed care, etc). Also be aware of demographic trends and how they will change things going forward.
As for real estate,
As for real estate, well-managed REITs seem to be faring better than others as they've been able to shore up their balance sheets through equity issuances. A number of them (e.g. Simon Property Group) have been raising money in anticipation of acquiring quality assets at good prices, although not too much of that has taken place. Some others (such as SF-based Terreno Realty this week) have gone IPO for the same reasons.
But in general, people are still waiting for the hammer to drop as property values continue to decline, leaving many assets overlevered or under water. The lack of CMBS and other financing yields a sizable financing gap for a lot of commercial real estate properties in the coming years. A lot of money is sitting on the sidelines waiting for distressed deals.