Construction Slows in 1Q23
With 23.4M for MOBs and 27.7M for hospitals, both are falling off the highs seen in 2022.
Alternative Asset Sales Activity
What level of sales activity are we seeing around alternative types of medical real estate?
Rehab Hospital Projects Maintain Strong Pipeline
Despite economic headwinds, rehabilitation hospitals have seen escalated development over the past couple of years. The chart below focuses on the scope of projects that started construction each year. We …
The Fed’s Expectations for 2023
Last week the Federal Open Market Committee (FOMC) decided to raise the target range for the federal funds rate to 4.25% – 4.5%, which was a 50-bps increase. After several 75-bps bumps...
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.
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 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 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.
The Medical Office Sector and GDP Growth
This morning the BEA released its first official estimate of real GDP growth for 2Q2022. It came in at -0.9. The revised official rate from last quarter was -1.6, and depending on the definition used, some would now say that we are in a recession.
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?
Will Cap Rates Continue to Compress?
We have continued to see cap rates compress throughout the first quarter of 2022. The median has gone up slightly, but...
MOB Rents: Does being close to a hospital matter?
Are MOB rents significantly higher when in close proximity to a hospital? To isolate the effect a property’s distance from the nearest hospital has on rent, we looked at a dataset of MOB’s that are not affiliated with a hospital, nor directly on a hospital campus.