Population Growth = More Demand for MOB Space
When developing an investment strategy, many investors will focus on geographic areas that have a high level of population growth. But does population growth translate into more demand for space? …
When developing an investment strategy, many investors will focus on geographic areas that have a high level of population growth. But does population growth translate into more demand for space? …
Over the past year or two, new construction projects have faced the headwinds of elevated labor, material, and financing costs. Because of this, we are now seeing inventory growth running at a slower pace. The graph below shows the amount of MOB square footage that finished construction on an annual basis, as a percentage of the inventory. The average over the past 10 years is about . . .
Revista has updated its annual look at the size and scope of the health care real estate sector. This update measures the real estate size and value of general acute care hospitals and outpatient buildings across the contingent United States.
The Revistamed Metro Rankings page provides an easy way to quickly measure the top 125 metro areas on key medical office metrics. The columns are sortable and users can also download the data to xls where even more columns will populate
The average cap rate for medical office building (MOB) transactions moved up to 7% in the last quarter of 2023. This is up 90 basis points from one year prior. A pricing gap between on and off campus MOBs remains, with on campus coming in 30 basis points lower at 6.7%. Despite the strong underlying fundamentals, investor demand is being limited by stringent capital conditions . . .
Revista held its 4th quarter, 2023 subscriber webinar recently. During the webinar, it was reported that occupancy rates were continuing to rise for Medical office properties in the top 50 metros.
For all of 2023 investors have been waiting for more clarity on the monetary policy path. The FOMC meeting last week provided what many have been waiting for. The median projection for the federal funds rate is now 4.6 for the end of 2024. This leaves room for three 25 basis point cuts throughout the year. While not shown in the graph below, the full range of forecasts for 2024 is 3.9 – 5.4. This indicates that all the meeting participants are predicting no rate hikes in 2024, which is a first for this year.
The year of 2023 has brought significant drops in sales activity across the commercial real estate sector. The higher cost of capital is driving investors into cautiousness and the healthcare real estate market is not immune …
Healthcare Real Estate (HCRE) spending on construction has established a recent peak in 2023. Revista tracks Hospital and Medical Office (or Outpatient Medical) construction based on total project values including land, hard and soft costs and buildout.
Within the past year, the average cap rate for a medical office building was 6.5. This is up about 60 basis points from one year ago.
Transaction activity for MOBs has certainly slowed in 2023 due to higher interest rates and tighter lending requirements, but deals are still getting done. A bright spot still seems to …
The office market continues to struggle with the volume of employees working from home or on a hybrid schedule coming out of the pandemic. Although historically viewed as a subsector of office, the dynamics of the users of medical office space are completely different.
The Regulation D Reserve Requirement, put in place by the Federal Reserve in 2020, is a measure designed to improve the stability of the financial system by requiring certain financial institutions to hold a minimum amount of reserves against their deposit liabilities.
Revista recently held its 1Q23 Subscriber Webcast. Hilda Martin and Mike Hargrave of Revista were joined by Gino Lollio, an Executive Director with Cushman & Wakefield Healthcare Capital Markets. Over 230 subscriber lines registered for the webcast indicating a high level of interest in emerging trends we covered.
What level of sales activity are we seeing around alternative types of medical real estate?
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 …
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...
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