March 23, 2017
Mike Hargrave

2016 Year End Transaction Reports are Available

Revista has released its 2016 Year End Transaction Reports.   There are 2 reports; one covering the US and another covering the Top 50 Metro Areas.  The transaction report covers medical real estate transactions including medical office properties (MOBs) and hospital real estate.  Detail are provided on volumes, pricing trends and breakouts.  Transaction listings as well as state and metro area information is provided.

2016 YE Transaction Cover Pg

Highlights:

  • Total medical real estate volume in 2016 was $11.3B.  This was comprised of $8.0B of MOBs and $3.3B of hospital real estate.  Overall 2016 volume was down 24% from 2015 when $13.8B worth of medical real estate traded hands.
  • Hospital cap rates, which had been compressing are showing signs of stabilizing.  The TTM Hospital cap rate was 7.9% in 4Q16 which is up 50 basis points from its low of 7.4% set in 4Q15.
  • MOB cap rates continue to compress. The median MOB cap rate was 6.4% in 4Q16, down 10 bps from 6.5% in 4Q15.  Each quartile of MOB cap rates show a similar trend of compression.

 

The 2016 Year End Transaction Reports is available to subscribers of Revista. For more information, please contact Mike Hargrave at 443-949-8794 or mike@revistamed.com.