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 . . .
Leasing/Property Management
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? …
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.
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.
MOBs Located on a Hospital Campus vs. MOBs Close to a Hospital Campus. Is there a Difference?
Historically, Revista has categorized medical office buildings (MOBs) into two categories, on a hospital campus or off. However, recently Revista has developed a third category, adjacent. These are the properties that fall within a quarter mile of a hospital campus footprint. Conventional thought suggests that on-campus assets demand a premium, but what about the buildings just outside of a campus?
MOB Rent Growth Acceleration Slows in 2Q
Historically, Medical Office Building year-over-year rent growth has been right around the 2% mark. During the pandemic shutdowns there was a meaningful slowdown, but it rebounded shortly after as businesses …
High Demand in the Sunbelt, Phoenix Tops the List
The Northeast and Pacific Coast markets have always had some of the highest occupancy rates for medical office buildings being the more expensive, high barrier-to-entry cities. However, considerable growth in …
MOB Occupancy at Cyclical High Point while Office Continues Struggle
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.
Strong Fundamentals in Florida Markets
Florida was the fastest growing state in 2022 with a total increase in population of 1.9%. Just about all of this growth is made up of migration into the state …
Medical Office Rent Growth Accelerates
In the wake of record inflation, landlords have had increasing pressure to raise rents at a faster pace. Historically, MOB annual rent growth has been around the 2% mark, and …
Physicians Moving Away from Independent Practice, Monetizing their Real Estate
Consolidation of physician practices and providers has picked up significantly since the onset of the pandemic. According to a report released by Avalere, now almost 3 out of 4 physicians are employed rather than in independent practice.
3Q MOB Construction Pipeline Hits 51 million SF as Opens Remain Low
Medical office construction dynamics continue to show the effects of delays related to labor and supply shortages. Another quarter of lower than usual deliveries resulted in the under-construction pipeline growing …
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.
San Jose & Las Vegas Top Markets for MOB Rent Growth
With continuing record inflation, the ability to raise rents is top of mind for many commercial real estate investors. One might be tempted to think that areas where overall inflation …