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...
Real Estate Financing/Capital Markets
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 …
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.
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 …
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.
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...
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 …
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 …
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.
MOB Sales Were Strong in 3Q; Sector Continues to Perform Well
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.
Top 50 Metro Occupancy Rate Climbs in 3Q21 for MOBs
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.
Top Ten Markets for MOB Construction
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.