Medical Office (MOB) transaction volume has slowed during the past year. Within the top 50 metros Revista recorded $7.14B worth of MOB trades from 3Q18 to 2Q19. This was down from $10.7B recorded from 3Q17 to 2Q18. While overall transaction activity is off peak levels, investors are still favoring selected metros for buying activity.
The table below shows the 6 most active metros during the period 3Q18 to 2Q19 based on total MOB transaction volume (properties $2.5M and above). NYC metro remains the most active with $720M changing hands during the past year. Charlotte is relatively new to the most active markets list with over $715M worth of MOBs trading during the past year. Los Angeles is usually among the most active and almost always sports the lowest cap rates of the most active markets – its TTM average cap rate for MOBs was 5.2 percent in 2Q19! Other markets like Atlanta, Chicago and Dallas are consistent favorites of investors in MOBs.
