• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
  • Blog
  • Free Resources
RevistaMed

RevistaMed

  • About
    • Meet Revista
    • Advisory Board
    • Partners
    • Press
    • Rising Leaders Council
    • Sponsorship
    • Contact Us
  • Events
  • Why Subscribe?
    • Featured Products
    • Business Development
    • Underwriting & Due Diligence
    • Asset Management
    • Capital Markets
    • Site Selection & Development
    • Leasing
  • Subscriber Login
Home / Policy/Legislation / Single Property MOB Cap Rates Creeping Up

Single Property MOB Cap Rates Creeping Up

December 17, 2019 by Mike Hargrave Topics: Policy/Legislation

Overall, MOB cap rates have continued to remain at lower levels compared to just a few years ago.  According to Revista’s 3rd Quarter, 2019 Medical Real Estate Transactions Report, the US MOB average cap rate 6.4% which was down slightly from 6.5% in 3Q18.  While the trends are relatively steady for the overall average, there is some movement to see when you dig into the trends. 

One way to look at cap rates is to compare properties that trade as a part of a portfolio compared to properties that trade as a single asset.  Cap rates on properties that trade at as part of a portfolio continue to trade at a premium compared to single assets.  The average “portfolio” was 6.2% in 3Q19 which was down from 6.5% in 3Q18.  No doubt the portfolio cap rate was influenced by Welltower’s acquisition of CNL Healthcare Properties which carried a reported cap rate of 5.7%. 

Single property cap rates, however, are moving in the opposite direction.  The single property cap rate was 6.8% in 3Q19 which was up 40 basis points from 6.4% in 3Q18.  What is driving the rise in cap rates for single properties?  It is most likely the mix of properties that are trading.  There have been fewer single trophy MOBs that have traded in 2019 compared to 2017 and 2018.  Revista will continue to monitor this trend.

MOB Cap Rate Trend, Source: Revistamed.com
Mike Hargrave
Mike Hargrave

Other Articles by Mike Hargrave:

    • Lenders to the Medical Office Sector Signaling Caution, Lower Volumes
    • Inflationary Pressures Impacting the Revista MOB Industry Fundamentals Report
    • MOB Transaction Volume Sets Quarterly and Annual Volume Records in 1Q22

Previous Post:2 Large Speculative Projects Rising in the Baltimore MSA
Next Post:2019 MOB Starts Trend Toward Large, Multi-Specialty Outpatient Centers

Sidebar

Topics

  • Construction/Development
  • Industry News
  • Leasing/Property Management
  • Mergers/Acquisitions
  • Policy/Legislation
  • Real Estate Financing/Capital Markets
  • Revista Best Practices
  • Revista News
  • Sponsor Spotlight
  • Transactions
  • Uncategorized

Recent Posts

  • MOB Transaction Volume Cools in 4Q, Cap Rates Creep Up
  • Rehab Hospital Projects Maintain Strong Pipeline
  • MOB Construction Off Recent Highs in 4Q
  • The Fed’s Expectations for 2023
  • Construction Starts have Remained Strong in Select Markets

Archives

Upcoming Events

  • There are no upcoming events.

Other Free Resources

Industry Directory

Search for and/or list your medical real estate services in Revista’s medical real estate directory.

Reports & White Papers

Download free reports & white papers on medical real estate.

Add Lease/Sale Listing

Revista provides free lease/sale listings for healthcare real estate.

Ready to Schedule a Demo?

Get in Touch Now
  • Why Subscribe?
  • Events
  • The MOB Scene
  • Add A Directory Listing
  • Add Lease/Sale Listing
  • Contact Us
  • Sponsorship
  • About
  • Terms of Use
  • Press

SIGN UP FOR MOB SCENE NEWSLETTER

  • Twitter
  • Facebook
  • LinkedIn