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Hospital Projects and Health Spending Are Lifting Demand for B.C. Medical Office Space


Raman Bayanzadeh, CCIM, ICD.D, a Principal of the CRE Investment & Development Team at Royal LePage Commercial (Sussex), was recently featured in a new Business in Vancouver article examining the forces driving demand for medical office space across British Columbia.


The article, "Hospital Projects, Health Spending Lift Demand for B.C. Medical Office Space," looks at how record health-care spending, an aging population and a wave of major hospital construction projects are turning medical office into one of the most resilient asset classes in B.C. commercial real estate.


You can read the full article on Business in Vancouver here: Hospital projects, health spending lift demand for B.C. medical office space


You can read the full article on Business in Vancouver here: Hospital projects, health spending lift demand for B.C. medical office space

Health Spending Keeps Climbing

Health-care spending in Canada was expected to reach approximately $399 billion in 2025, or roughly 12.7 per cent of GDP. In British Columbia, health spending has grown to about 9.4 per cent of provincial GDP, up from 6.8 per cent two decades ago, driven by population growth, aging demographics and rising service utilization.

That spending is flowing directly into the built environment. Major projects underway or recently completed across Metro Vancouver include the multi-phase redevelopment of Burnaby Hospital, the new $2.18 billion St. Paul's Hospital in False Creek Flats expected in 2027, and the ongoing redevelopment of Royal Columbian Hospital in New Westminster. Each of these anchors attracts the clinics, pharmacies, imaging centres and specialists that want to locate nearby.


Why Lenders Love Healthcare Tenants and Owners

One of the key points Raman shared with BIV is the exceptional access to capital that healthcare professionals enjoy. Banks view dentists, family doctors and veterinary clinics as low-risk borrowers, and lenders routinely offer financing packages of up to 100 per cent of the property value and the cost of improvements.


This level of institutional support is rarely extended to other business types, and it gives healthcare practitioners a meaningful advantage when deciding between leasing and owning their space.


Long Leases, Stable Tenants

Medical spaces require significant investment in plumbing, electrical, ventilation and specialized fit-outs. Because those improvements are expensive and difficult to relocate, medical tenants tend to commit for the long term. As Raman noted in the article, landlords can secure leases of 10 to 20 years with stable, low-risk, recession-resistant tenants. For investors and landlords, that translates into dependable income through market cycles.


The Rise of "Medtail"

Another trend highlighted in the article is the continued growth of medtail, or medical retail. Clinics, pharmacies, physiotherapy practices and other healthcare users are increasingly relocating from upper-floor office space to ground-floor retail locations, where accessibility and street-level visibility make it easier for patients to find and reach them. This shift is reshaping retail leasing in neighbourhoods across Vancouver, the North Shore and the broader Lower Mainland.


Ongoing, Permanent Demand

Underlying all of these trends is a simple demographic reality. B.C.'s population is growing and aging at the same time, and the province does not currently have the facilities, space or physicians needed to service that demand. As Raman put it, that gap is both a growth opportunity and a present-day reality for the medical real estate sector.


Purpose-Built Medical Strata Units Now Selling: Cascadia Health Pavilion


For healthcare professionals and investors looking to act on these trends, our team is currently offering strata units for sale at the Cascadia Health Pavilion, a purpose-built medical office building by Cascadia Green Developments on Marine Drive in North Vancouver.


Designed specifically for healthcare use, the building addresses the requirements that conventional office and retail space often cannot, including appropriate HVAC, plumbing, floor plates, parking and patient accessibility. It is an ideal opportunity for doctors, dentists, specialists, clinics and healthcare investors who want to own their space and benefit from the strong financing available to medical professionals.



Work With a Healthcare Real Estate Specialist

Our team at Royal LePage Commercial has deep experience in healthcare real estate across Greater Vancouver, from medical office acquisitions and dispositions to clinic leasing, medtail site selection and purpose-built medical strata developments such as the Cascadia Health Pavilion in North Vancouver.


If you are a physician, dentist, veterinarian, pharmacist or investor considering buying or leasing medical space, contact Raman Bayanzadeh at raman@royallepagecommercial.com or 778.896.7592 or Pouria Nikravan at pourian@rlpcommercial.com or 604 783 0380



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