New Reports Available – Pivotal x Revista
For the first time, Revista and Pivotal are bringing together the largest medical real estate database and All-Payer Claims data to provide unparalleled intel into property level tenant risk and …
Industry News
MOB Rents by Region
Which regions have the highest rents? According to the following graph, which covers the largest metro areas across the U.S., the Pacific region is the outlier. In 2Q24, the Pacific had asking rents 29% higher . . .
2Q2024 Snapshot
What direction has the MOB market been going in 2024? In this article we are focusing on the Top 100 metro areas. The table below shows a snapshot of the changes observed for key metrics in the second quarter of this year. Inventory continued . . .
Medical Office Inventory Growing at a Slower Rate
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 . . .
RevistaMed Updates the Size and Scope of the Medical Real Estate Sector 2024
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.
Construction is Strong for Behavioral Health and Rehab Hospitals
Recently, the number of new construction projects has been low for the medical real estate industry. However, certain property types have been going against the current and have seen higher activity than usual. Two that stand out are . . .
A look at the Columbus, Ohio outpatient real estate market
Columbus, Ohio is the 21st largest market RevistaMed tracks in terms of outpatient or medical office square feet. Columbus has been in growth mode for the past few years from a healthcare real estate perspective.
2024 Outpatient Development Report
In partnership with Health Care Real Estate Insights (HREI), Revista has published their annual outpatient development report. The 2024 report covers all medical outpatient real estate developments that either broke ground or completed in the previous year . . .
A Look at Revista’s Highest Occupied MOB Market
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
Here are the Top 10 Demand Markets for Medical Office as of 4Q23
During the presentation we discussed the top 10 demand markets (out of the largest 125). We ranked the markets top to bottom based on trailing twelve month (TTM) net absorption (defined as TTM absorption minus TTM completions).
The Revista 4Q23 Subscriber Webinar – Abridged Slides
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.
While MOB Rent Levels are Strongest in Coastal Markets, Rent Growth is Fastest Elsewhere
For healthcare tenants in costal markets such as Los Angeles, San Jose or San Francisco, it is understood that higher rent levels come with the territory. Historically hard to build, high demand markets on the coasts have allowed rent levels to build over the years. In fact, the 2 most expensive rent markets (of the top 50 metros) for MOBs in 3Q23 are San Jose ($45.81 avg NNN rent) and San Francisco ($41.00 avg NNN rent).
MOB Fundamentals Remain Steady
Development and acquisition activity is currently suppressed in the medical office sector. However, this does not reflect a wavering in the underlying performance of medical assets. The graph below is from our 3Q23 Industry Fundamentals Report, which tracks a group of large medical office portfolios containing approximately 150 million square feet. It shows the average NOI per occupied square foot, which has continued to tick up, now at a level of $23.20.
Are MOB Sales Taking Place in the Current Environment?
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 …
HCRE Construction Spending Peaks in 2023
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.
MOB Cap Rates Continue to Expand in 2Q23
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.
MOB Construction Continues to Drop in 2Q23
Recently we’ve been observing a downward trend, which has been reinforced by the current quarter. On a quarterly basis, 2Q23 only had around 2 million square feet start construction.
2023 Outpatient Development Report Recap
When looking at all outpatient projects, Hammes developed the most with a count of 12, for a total of 769,658 sf.