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 …
The MOB Scene
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?
Physician Services PPI Not Following Inflation….yet
The Producer Price Index (PPI), which measures change in the prices paid to US producers of goods and services, continues to reflect the intense inflation being seen across many industries. …
Inflationary Pressures Impacting the Revista MOB Industry Fundamentals Report
When looking at the same-store growth measures in the report, a pattern has emerged in recent quarters. That pattern is increasing growth in same-store revenue growth, expense growth and NOI or net operating income growth.
MOB Transaction Volume Sets Quarterly and Annual Volume Records in 1Q22
he medical office transaction market is showing no signs of slowing down through the first quarter of 2022.
New Hospital Construction Picks Up
The construction pipeline of new and replacement hospital projects has been steadily increasing over the past two years. As of the second quarter, 45 million square feet of new hospital …
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...
Strong Absorption in 1Q Pushes Occupancy Higher
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
California deal breaks all-time MOB cap-rate record
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.
Sponsor Spotlight: GreenRock Provides Easy Access to Affordable Financing
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 …
Chicago MOB Market Building into Growth
The Chicago Metro Medical Office Building (MOB) market has been rising on lower levels of completions and strong absorption all throughout the pandemic. Its occupancy rate is currently 92.4% (4Q21) …
More Investors Shift Focus to Smaller Markets
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 …
Physician Office Employment Now Fully Recovered
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 Record Sales Activity Driven by Private Equity
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 …
2021 was both the ‘Year of the Portfolio’ and the ‘Year of the Recapitalization’
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 Fed Sets the Stage for Higher Fed Funds Rate in 2022
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.
Top Ten Metros for MOB Sales Activity
Last quarter was a record for medical office transaction volume since Revista has been tracking data, coming in at a total of $5.2B in sales. On an annual basis, that …
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.