The company was successful at building the business, but it became apparent that short-term property management agreements created a frequent churn that wasn’t helpful for long-term growth. Where was the opportunity for the future?
Sitting at the end of a pier on a lake in Michigan, a concept began to crystallize for Todd. He knew the US healthcare real estate market was extremely large (about $1 trillion), highly fragmented (owned by many different entities), and medical office was roughly a third (39%) of that pie, or $300 billion. He also knew healthcare was a smart choice, as demand would only grow as baby boomers aged, and he recognized that healthcare systems owned millions of dollars of real estate. He asked himself a simple question: could the real estate owned by healthcare systems be used to grow their services and build more market share for them?
Lillibridge was way ahead of the curve in recognizing that hospitals’ and health systems’ real estate held opportunities for growth if they could just unlock the value from their bricks and mortar. Lillibridge was positioning itself as the leader in a new niche market that didn’t even have a name yet — and it would become an important real estate sector.