Overall transaction volume for Medical Office Buildings (MOB) were down in 2018 versus 2017. According to Revista’s Year End 2018 Medical Real Estate Transactions report, MOB transaction volume was $11.9B in 2018 compared to $15.8B in 2017. While volume was down in 2018, it was on par with 2016’s volume of $11.7B and 2015’s volume of $11.8B.
So what markets were investors targeting in 2018? Below are the 5 most active MOB markets ranked by 2018 MOB transaction volume. New York’s volume in 2018 was $1.3B which was 2.75x 2017’s volume. Houston was the 2nd most active market in 2018. The $886M of transaction volume in Houston was buoyed by LaSalle’s ~$405M purchase of the Memorial Hermann Medical Plaza. Harrison Street Realty capital drove Chicago’s volume of $693M with their purchase of the DuPage Medical Group Portfolio. And Milwaukee’s volume of $400M was in large part due to Aurora Healthcare’s purchase of ~18 MOBs from Welltower.
Most Active MOB Markets 2018