• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
  • Blog
  • Free Resources
RevistaMed

RevistaMed

  • About
    • Meet Revista
    • Advisory Board
    • Partners
    • Press
    • Rising Leaders Council
    • Sponsorship
    • Contact Us
  • Events
    • 2025 Revista Medical Real Estate Investment Forum
    • Subscriber Webinar
  • Why Subscribe?
    • Revista x Pivotal
    • Featured Products
    • Business Development
    • Underwriting & Due Diligence
    • Asset Management
    • Capital Markets
    • Site Selection & Development
    • Leasing
  • Subscriber Login
Home / Industry News / Are Larger Medical Office Buildings More Valuable than Smaller Ones?

Are Larger Medical Office Buildings More Valuable than Smaller Ones?

February 27, 2019 by Mike Hargrave Topics: Industry News, Mergers/Acquisitions, Real Estate Financing/Capital Markets, Revista News

Attendees of this year’s Revista Medical Real Estate Investment Forum (MREIF) in San Diego received take home data briefs as a part of their attendance. One such brief profiled several interesting insights regarding transaction activity. The Medical Real Estate Valuations data brief contained a chart entitled MOB Cap Rates and Price per SF by size grouping of MOBs. The data covered these metrics for specific size groupings of MOBs from January 2017 to December 2018 (2-year period). The data shows a clear trend occurring during this time period – that Larger MOBs trade at lower capitalization rates (cap rate) than their smaller counterparts. The group of MOBs 80,000 SF and higher traded at an average cap rate of 5.8 during the 2-year period. This compares to cap rates of 6.0, 6.4 and 6.6 for MOB’s 40K SF to 80K SF, 20K SF to 40K SF, and 20K SF & under, respectively. The valuation difference also generally holds for price per SF aside from the 20K SF and under group. This group contains many single tenant high acuity properties such as dialysis and surgery centers which tend to trade at higher prices per SF.

Medical Office Cap Rates and Price Per SF by MOB Size Grouping; 2017 and 2018 (Source: Revista)

MOB Cap Rates by Size

 

 

Mike Hargrave
Mike Hargrave

Other Articles by Mike Hargrave:

    • A Look at 1Q25’s highest occupied Medical Office Market
    • Outpatient Real Estate Sector Riding a Wave of Strength!
    • Off Campus MOBs Catching up to On Campus MOBs in the Top 50 Metros

Previous Post:As Welltower Keeps Buying, its Strategy is Becoming Clearer
Next Post:CPMC Van Ness Campus to Open March 2nd

Sidebar

Topics

  • Construction/Development
  • Industry News
  • Leasing/Property Management
  • Mergers/Acquisitions
  • Policy/Legislation
  • Real Estate Financing/Capital Markets
  • Revista Best Practices
  • Revista News
  • Sponsor Spotlight
  • Transactions
  • Uncategorized

Archives

RSS Recent Blog Posts

  • Limited Transaction Volume to Start 2025 April 29, 2025
    The preliminary 1Q25 numbers are in, and they show that transaction volume has been slow to kick off the year. $1.5 billion worth of MOBs traded in the 1st quarter, and $8.9 billion traded over the past year. This suppressed level of activity is . . . The post Limited Transaction Volume to Start 2025 […]
    Stephen Lindsey
  • A Look at 1Q25’s highest occupied Medical Office Market April 28, 2025
    That’s right!  With a 1Q25 occupancy of 96.9%, Asheville NC is the highest occupied market of the largest 125 metros RevistaMed tracks each quarter.  Asheville, which is still recovering from the effects of Hurricane Helene in September of 2024, can find strength within its healthcare market and within the MOB sector. The post A Look […]
    Mike Hargrave
  • Rising Rents for Newly Built MOBs March 31, 2025
    How have rising construction costs affected rents? Revista’s construction data continues to show increases in the cost of building an MOB. The average cost per square foot came in at $549 for completed MOBs in 2024. That is a . . . The post Rising Rents for Newly Built MOBs appeared first on RevistaMed.
    Stephen Lindsey
  • Cap Rates by Property Price February 28, 2025
    Typically, the transaction stats we look at are only for MOB trades that are at least $2.5 million. However, we do have data on a solid portion of the smaller deals. In the chart below we compare cap rates based on the property price, including those under $2.5M . . . The post Cap Rates […]
    Stephen Lindsey

Other Free Resources

Industry Directory

Search for and/or list your medical real estate services in Revista’s medical real estate directory.

Reports & White Papers

Download free reports & white papers on medical real estate.

Add Lease/Sale Listing

Revista provides free lease/sale listings for healthcare real estate.

Ready to Schedule a Demo?

Get in Touch Now
  • Why Subscribe?
  • Events
  • The MOB Scene
  • Add A Directory Listing
  • Add Lease/Sale Listing
  • Contact Us
  • Sponsorship
  • About
  • Data Terms of Use
  • Sponsorship Terms
  • Press

SIGN UP FOR MOB SCENE NEWSLETTER

  • Twitter
  • Facebook
  • LinkedIn