Overall, the sector is performing near cyclical highs in terms of occupancy and NOI growth. The occupancy rate as of the 2nd quarter 2016 was 92.5%.
The report shows the construction pipeline is growing. The total US medical real estate construction pipeline now stands at $102.1 B which is up 5.1% from the year end 2015 figure of $97.1 B.
Orange County Medical Office Buildings have been a prized possession of real estate investors for several years. In fact, over the past several years, investors have acquired over $1.5 Billion of MOBs in Orange County.
Seattle is nowhere near the top in terms of penetration, but their sales stats over the last year trumps all in terms of total volume AND square feet sold as a percent of inventory. To top it off, these sales averaged out to the highest price per square foot in the top twenty markets...
Three 300-million-dollar hospital projects have broken ground in the last two months – and they’re outside the top 100 metros. These projects are large in scale and bring in national firms to design and manage construction.
We often show in our reports and presentations the metros that have the most MOB construction activity. Frequently this ends up being the usual suspects - New York, Chicago, Los Angeles etc. and this is simply because these are the largest overall markets so they will tend to have more space being built. To broaden the spectrum, let’s take a look at metros that are the most active in comparison to their existing inventory.