The MOB Scene
2022 certainly kicked off at high speed with almost 3 times the space delivered being absorbed in the quarter. 4.3 million square feet of space was absorbed/newly occupied and 1.4
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.
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 …
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 …
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 …
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 …
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.
The Federal Reserve (Fed) yesterday released updated economic projections including their expectations for the Fed Funds rate. To look at the potential impact on MOB cap rates, let’s review recent history.
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.
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.
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.
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.
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.