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.
The MOB Scene
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 …
MOB Construction Starts Strong Despite Rising Costs
We\’ve all been hearing about the significant uptick in materials and labor costs associated with construction over the last number of months, particularly lumber which has been the focus of …
MOB sales slow down in Q1, but it’s still early for 2021
It is probably safe to say that the volume of medical office building (MOB) salesin the COVID-19 pandemic-ridden year of 2020 exceeded people’s expectations. After a lackluster 2Q and 3Q, …
2021 Transactions Off to a Quiet Start after 4Q Rush of Closings
After finishing out 2020 with one of the strongest volume quarters in recent years, 2021 is off to a quiet start. $1.8B in MOB transactions closed in the first quarter, …
MOB construction completions fall to multi-year low
MOB Construction Completions fall to Multi-Year Low Medical Office (MOB) construction completions, which were near peak levels just one year ago have fallen to multi-year lows as of the 1st …
Revista Developer Survey shows strong development numbers; it also ranked the top third-party developers in 2020
While the amount of outpatient facilities started or completed during 2020 fell by about 9.7 percent from the previous year, the number of healthcare real estate projects taking place remains quite healthy
Secondary Markets Less Affected during Pandemic
The medical office building sector has held up remarkably well during the COVID-19 pandemic and continues to be an attractive asset class to investors for it’s resilience. Occupancy has remained …
Private Equity Becomes More Aggressive on MOB Pricing
Much has been made of private investors controlling the buying landscape in recent years. According to Revista, private investors have increased their share of overall MOB buying activity from 55% in 2019 to 69% in 2020 and 70% YTD in 2021.
With a late surge in 4Q, MOB sales in 2020 once again topped the $11 billion mark, a benchmark figure that conveys the product type’s resilience
Back in January, Revista reported that medical office building (MOB) sales had “preliminarily” totaled $10.2 billion in 2020. The reason for the “preliminary” tag was that Revista was presenting the …