It is probably safe to say that the volume of medical office building (MOB) salesin the COVID-19 pandemic-ridden year of 2020 exceeded people’s expectations. After a lackluster 2Q and 3Q, sales rallied in 4Q, lifting the total volume for 2020 – despite the pandemic – to $11.5 billion and marking the sixth straight year in which sales topped the $11 billion threshold.
After finishing out 2020 with one of the strongest volume quarters in recent years, 2021 is off to a quiet start. $1.8B in MOB transactions closed in the first quarter, down from $3.3B in 1Q20 and in line with 1Q19. On a TTM basis, we are now running at just $10B in volume.
Medical Office (MOB) construction completions, which were near peak levels just one year ago have fallen to multi-year lows as of the 1st quarter of 2021. According to newly released Revista data, 18.6 million square feet (MSF) of MOB space completed in the year ending 1Q21.