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 …
The MOB Scene
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
Curious about PACE Financing?
You’ve probably been hearing more and more about PACE lending lately as it has become a more popular (and available!) financing tool in healthcare. Repayment of this loan is through …
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 …
3Q MOB Construction Pipeline Hits 51 million SF as Opens Remain Low
Medical office construction dynamics continue to show the effects of delays related to labor and supply shortages. Another quarter of lower than usual deliveries resulted in the under-construction pipeline growing …
*NEW* Hospital Market Share Report
The Revista team has been hard at work building out some new functionality and reports for RevistaMed subscribers. You can now see visually by zip code where a hospital has …
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.
San Jose & Las Vegas Top Markets for MOB Rent Growth
With continuing record inflation, the ability to raise rents is top of mind for many commercial real estate investors. One might be tempted to think that areas where overall inflation …
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.
Annual MOB Transaction Volume Over $21B
Preliminary numbers for sales transactions in the second quarter put total annual transaction volume at over $21 billion. This is a new high watermark for the sector since Revista has been tracking data. However, the second quarter itself is slightly off the recent quarterly highs we've been seeing with a preliminary total of $3.6 billion.
The Impact of Interest Rates on Medical Real Estate
The Federal Reserve announced last week a 75bps rate hike, along with continued balance sheet reduction; the largest rate hike since 1994. What does that mean? Raising interest rates is …
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?