ASCs – Past, Present & Future- An Observation
Over the last 30 years, there has been an influx in Ambulatory Surgery Centers (ASCs) for reasons including, but not limited to, physician demand, employee retention, rising case migration and …
The MOB Scene
2023 Outpatient Development Report Recap
When looking at all outpatient projects, Hammes developed the most with a count of 12, for a total of 769,658 sf.
MOB Occupancy at Cyclical High Point while Office Continues Struggle
The office market continues to struggle with the volume of employees working from home or on a hybrid schedule coming out of the pandemic. Although historically viewed as a subsector of office, the dynamics of the users of medical office space are completely different.
Regulation D – The 0% Reserve Requirement
The Regulation D Reserve Requirement, put in place by the Federal Reserve in 2020, is a measure designed to improve the stability of the financial system by requiring certain financial institutions to hold a minimum amount of reserves against their deposit liabilities.
TTM MOB Cap Rate Trends Showing a 20-30 Basis Points (bps) Sequential Rise
Revista recently held its 1Q23 Subscriber Webcast. Hilda Martin and Mike Hargrave of Revista were joined by Gino Lollio, an Executive Director with Cushman & Wakefield Healthcare Capital Markets. Over 230 subscriber lines registered for the webcast indicating a high level of interest in emerging trends we covered.
2022 Top Outpatient Developers – Developer Owned Projects
Overall, Revista tracked 44.9 million square feet of outpatient developments in 2022, with 18.8 million (42%) being done by third-party developers
Construction Slows in 1Q23
With 23.4M for MOBs and 27.7M for hospitals, both are falling off the highs seen in 2022.
Strong Fundamentals in Florida Markets
Florida was the fastest growing state in 2022 with a total increase in population of 1.9%. Just about all of this growth is made up of migration into the state …
Medical Office Rent Growth Accelerates
In the wake of record inflation, landlords have had increasing pressure to raise rents at a faster pace. Historically, MOB annual rent growth has been around the 2% mark, and …
Alternative Asset Sales Activity
What level of sales activity are we seeing around alternative types of medical real estate?
MOB Transaction Volume Cools in 4Q, Cap Rates Creep Up
Data from the end of 2022 is beginning to reflect what many are feeling on the ground with a noticeable dip in MOB transaction volume and an upward creep in …
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 …
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 …
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.
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.
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 …
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