3Q21 MOB Transaction Sets Record High
Investors have been calling for increased transaction volumes within the MOB sector since the pandemic started to wane. If 3Q21 is any indication their calls have been right on the money.
The MOB Scene
A tutorial on how to improve upon a record-low cap rate
The MOB deal that took place in June 2021 at what many professionals in the MOB sales sector consider an all-time low cap rate is already turning out to be a good transaction for the buyer, according to an executive with one of the firms that acquired the facility in a joint venture partnership.
Specialty Demand Reports Upgrade
Revista has been hard at work on product development this fall and one of the new releases is an upgrade to our current Specialty Demand report. You can now adjust …
MOB Sales Were Strong in 3Q; Sector Continues to Perform Well
During Revista’s recent 3Q webcast, Principal Mike Hargrave data showing that the volume in the third quarter was, preliminarily, $4.6 billion, the second highest quarterly total – behind the $4.9 billion of sales in Q2 2017 — since Revista began tracking such data in 2015.
Top 50 Metro Occupancy Rate Climbs in 3Q21 for MOBs
The occupancy rate across medical office buildings located in the US top 50 metros climbed to 91.7% in 3Q21. This was up from 91.5% in 2Q21 and 91.3% one year ago.
Top Ten Markets for MOB Construction
A significant portion of outpatient construction has been concentrated in top markets in recent quarters. As of 3Q21, 15.3 million square feet, or 32% of the entire US pipeline of medical office construction was located in just 10 metros.
Physician Office Employment Almost Fully Recovered
The Covid-19 pandemic has had far reaching effects on many sectors of the US economy. While faring better than most sectors, the physician office sector has not been immune to the pandemic’s effects.
7 New Hospitals Open in 3Q21
Although hospital construction has certainly been affected by the pandemic, most of that impact has been on the expansion of existing hospitals, not the construction of brand new ones. As …
Cornerstone, KKR form a new joint venture partnership
For several years now, a number of large investors have entered the healthcare real estate (HRE) sector by partnering with longtime and successful HRE firms.
MOB Project Delays Temper Deliveries, Starts Steady
MOB project completions continue to slow in 2Q, down to 17 million square feet in annual deliveries. This is the lowest pace of deliveries in the last 6 years and represents a 32% decrease from the annual run rate of 25.1 million SF in deliveries in 1Q2020- just before the onset of COVID and all the related shutdowns, restrictions and labor shortages.
MOB Cap Rates Continue to Impress
Cap rates for Medical Office Properties are continuing a trend of compressing during the past several years. Updated 2nd quarter, 2021 Revista data reveals the median MOB cap rate was 5.8%. This was down from 6% in 1Q21 and 6.3% one year ago.
Biggest deal so far of 2021 started as a potential recapitalization
Nuveen-NexCore acquire MOB/life science portfolio for $620.4M; price for the 27 MOBs was $463M
What started out as a potential recapitalization of a portion of IRA Capital’s healthcare real estate (HRE) portfolio turned into the biggest MOB deal to date in 2021.
Physician Groups Continue to Monetize
Independent physician groups continue to monetize their real estate assets, reliably selling $1B+ in assets annually. As competition remains fierce for deals in the sector, this segment continues to be a source of opportunity for investors
MOBs continue to perform well, with occupancy in top 50 markets rising to 91.7%
In the latest MOB statistics compiled by Revista, the occupancy rate and the absorption of space in MOBs larger than 7,500 square feet and located in the country’s top 50 metropolitan areas increased in the second quarter (2Q) 2021.
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.
11 Leadership Lessons Learned from a Conversation with Terry Wood
As part of the Revista’s commitment to the healthcare real estate industry, we are thrilled to introduce…THE RISING LEADERS COUNCIL (RLC).
Rising leaders around the country are applying for one of ten positions in the inaugural class now through September. One of the many great benefits will be interacting with and working on initiatives with Revista leadership like, Terry J. Wood, Vice President – Real Estate at Kaiser Permanent. RLC co-chair, Kathryn Baxter, Division President at Facility 360, recently interviewed Terry about leadership and here are some amazing highlights from their conversation:
A record-setting MOB cap rate of 3% in the Bay Area
A deal that recently took place in Burlingame, Calif., in the suburbs south of San Francisco, may have set an all-time cap rate record for an investment-grade MOB.
Major California Metros Exhibit Strong MOB Fundamentals
In this post we are looking at 1Q21 Medical Office Building (MOB) performance for major metro areas located in California. Generally the California metros outperform the top 50 Metro benchmark …