*NEW* Hospital Market Share Report
The Revista team has been hard at work building out some new functionality and reports for RevistaMed subscribers. You can now see visually by zip code where a hospital has …
Archives for 2022
2021 Record Sales Activity Driven by Private Equity
2021 turned out to be a record-breaking year for MOB transaction activity with preliminary stats now showing more than $16B changing hands, up from $11.7B in 2020. Private equity investors …
2021 was both the ‘Year of the Portfolio’ and the ‘Year of the Recapitalization’
In early November, Mindy Berman, senior managing director and head of the healthcare capital markets platform with Jones Lang LaSalle Inc. (NYSE: JLL), reported during an HRE conference that year-to-date in 2021 there had been 21 MOB portfolio deals topping $100 million each.
3Q MOB Construction Pipeline Hits 51 million SF as Opens Remain Low
Medical office construction dynamics continue to show the effects of delays related to labor and supply shortages. Another quarter of lower than usual deliveries resulted in the under-construction pipeline growing …
Annual MOB Transaction Volume Over $21B
Preliminary numbers for sales transactions in the second quarter put total annual transaction volume at over $21 billion. This is a new high watermark for the sector since Revista has been tracking data. However, the second quarter itself is slightly off the recent quarterly highs we've been seeing with a preliminary total of $3.6 billion.
California deal breaks all-time MOB cap-rate record
Just when it looked like cap rates for MOBs could not go any lower – following a sale in mid-2021 that took place at what was then an all-time record low of 3 percent – a sale took place in early 2022 at an even lower first-year estimated yield.
Chicago MOB Market Building into Growth
The Chicago Metro Medical Office Building (MOB) market has been rising on lower levels of completions and strong absorption all throughout the pandemic. Its occupancy rate is currently 92.4% (4Q21) …
Construction Starts have Remained Strong in Select Markets
If we look at construction starts over the past year, we can see that a handful of markets have remained very strong despite increasing market headwinds. At a national level, annualized construction starts have been stable throughout 2022, hovering around 26 million square feet.
Curious about PACE Financing?
You’ve probably been hearing more and more about PACE lending lately as it has become a more popular (and available!) financing tool in healthcare. Repayment of this loan is through …
Inflationary Pressures Impacting the Revista MOB Industry Fundamentals Report
When looking at the same-store growth measures in the report, a pattern has emerged in recent quarters. That pattern is increasing growth in same-store revenue growth, expense growth and NOI or net operating income growth.
Lenders to the Medical Office Sector Signaling Caution, Lower Volumes
The inverted yield curve usually signals an upcoming recession. Rates have been rising dramatically for several months. Given the uncertainty, Revista decided to conduct a quick survey of major
MOB Construction Off Recent Highs in 4Q
After a several year upward trend in new medical office construction starts, 4Q22 will see a slight tick down in the annual run rate. In 2022, 24.7 million square feet …
MOB Construction Outlook
With the cost of construction materials continuing to rise, and interest rate hikes on the horizon, how will new MOB developments be affected?
MOB Fundamentals Have Remained Strong in 3Q22
An inversion of the yield curve is a well-known indicator of a coming economic downturn. Using the difference between the 10-year and 2-year treasury spread, we can see that the …
MOB Occupancy Trends Across the Country
If we take a look at the overall occupancy trends for the top 50 metros, we can see that a shallow U-shape has formed over the past few years. While this pattern shows a modest dip followed by a recovery, this may not be the story for individual metros.
MOB Transaction Prices
If you have been following our MOB transaction trends lately, you know that volume has been very high over the past year. In the second quarter of this year, Revista …
MOB Transaction Volume Sets Quarterly and Annual Volume Records in 1Q22
he medical office transaction market is showing no signs of slowing down through the first quarter of 2022.
More Investors Shift Focus to Smaller Markets
With competition remaining at all-time highs for quality medical office assets, investors are increasingly looking toward smaller, growth markets for opportunities. In 2015, 44% of medical office transaction volume was …
New Hospital Construction Picks Up
The construction pipeline of new and replacement hospital projects has been steadily increasing over the past two years. As of the second quarter, 45 million square feet of new hospital …
Physician Office Employment Now Fully Recovered
In what is a remarkable recovery compared to other sectors, physician office employment is now fully recovered from its losses experienced during the Covid-19 Pandemic. We are showing a graph below …
Physician Services PPI Not Following Inflation….yet
The Producer Price Index (PPI), which measures change in the prices paid to US producers of goods and services, continues to reflect the intense inflation being seen across many industries. …
Physicians Moving Away from Independent Practice, Monetizing their Real Estate
Consolidation of physician practices and providers has picked up significantly since the onset of the pandemic. According to a report released by Avalere, now almost 3 out of 4 physicians are employed rather than in independent practice.
San Jose & Las Vegas Top Markets for MOB Rent Growth
With continuing record inflation, the ability to raise rents is top of mind for many commercial real estate investors. One might be tempted to think that areas where overall inflation …
Sponsor Spotlight: GreenRock Provides Easy Access to Affordable Financing
GreenRock Capital LLC provides easy access to affordable financing to fund short- and long-term capital budget requirements, new construction and large scale tenant improvements, repaid on the owner’s property tax bill. GreenRock’s …