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    The MOB Scene

    Articles and blogs on medical real estate, as well as insights into Revista data

  • April 7, 2020
    Mike Hargrave

    MOB Pricing – What the Public Markets are Telling Us

    A little over a month ago things were business as usual within the world of healthcare real estate. The Revista Medical Real Estate Investment Forum had just wrapped up with healthy growth in attendance and many attendees were speaking of another year ahead of continued growth in transaction volumes.
    March 26, 2020
    John B. Mugford

    MOB Sales Top $11 Billion for the Fifth Straight Year

    Through Q3 of 2019, there was some speculation about whether the total MOB sales volume for the year would top the $11 billion threshold for the fifth straight time.
  • March 25, 2020
    Mike Hargrave

    MOB Tenant Retention Rates Set Recent Highs in 4Q19

    With the onset of the Covid-19 pandemic this will be an important metric to track in 2020 and beyond. Take comfort in the fact that over previous cycles/downturns the rate held up remarkably well, especially when compared to other asset classes.
  • February 27, 2020
    John B. Mugford

    Amount of MOB Space Now Equals that of Hospitals

    The big shift that everyone involved in healthcare and healthcare real estate (HRE) has been talking about for years upon years has finally taken place, at least on the real estate side of the equation.
    February 26, 2020
    Mike Hargrave

    Is MOB Rent Growth Correlated to Occupancy?

    Classic economic theories establish a clear relationship between supply and demand for many goods and services. In real estate circles the theory says that as prices rise, demand (or occupancy) should fall.
    January 22, 2020
    Hilda Martin

    2019 MOB Starts Trend Toward Large, Multi-Specialty Outpatient Centers

    Last year 77 medical office projects started that will be over 100,000 square feet when completed. That's quite an uptick over previous years when we averaged less than 50.
    December 17, 2019
    Mike Hargrave

    Single Property MOB Cap Rates Creeping Up

    The MOB Scene December 17, 2019 Mike Hargrave Single Property MOB Cap Rates Creeping Up Topic:Policy/Legislation Overall, MOB cap rates have continued to remain at lower levels compared to just a few years ago. According to Revista’s 3rd Quarter, 2019 Medical Real Estate Transactions Report, the US MOB average cap rate 6.4% which was down slightly from 6.5% in 3Q18.
    December 17, 2019
    Mike Hargrave

    2 Large Speculative Projects Rising in the Baltimore MSA

    If you have seen Revista’s metro trends you may have noticed the Baltimore MOB market is one of the tightest in the country. The MOB occupancy rate has averaged between 93.9% and 94.8% since the 2nd quarter of 2018.
    November 26, 2019
    Hilda Martin

    For Community Based Building & Services, Flexibility is Key

    So much of the conversation in the industry right now is about placing medical services out into the community to be more convenient and cost effective for patients. But what is that community going to look like in 10 years? 20 years? Flexibility becomes the name of the game.
    November 25, 2019
    Mike Hargrave

    Metro Focus – Jacksonville, FL

    Let’s take a look at the Jacksonville market. At 7.7 million square feet (MSF), Jacksonville’s MOB market is the 36th largest market in the US based on total SF.
    November 25, 2019
    John B. Mugford

    Q3 MOB Sales Were $2.2 Billion; 2019 Total Should Top $10 Billion Once Again

    After a slow start to the year, medical office building (MOB) sales have picked up in the second and third quarters (Q2 and Q3), providing a very strong possibility that the final 2019 volume will top $10 billion for the fifth straight year.
    October 24, 2019
    John B. Mugford

    Kaiser Still King of Medical Real Estate Ownership; UnitedHealth Group is on the Rise

    It doesn’t look as if anyone is going to dethrone Oakland, Calif.-based Kaiser Permanente as the country’s largest owner of medical real estate anytime soon. For the sixth consecutive year, Kaiser, a health insurer and provider with 8.6 million members in nine states, sat atop the annual “2018 Top 50 Owners of Medical Real Estate” report compiled by Revista, which gathers and provides a wide variety of healthcare real estate (HRE) data, statistics and reports for its subscribing members.
    October 24, 2019
    Mike Hargrave

    Revista Updates the Size and Scope of the Healthcare Real Estate Sector

    Taken together, the Hospital and MOB sector is valued at $1 Trillion
    October 23, 2019
    Hilda Martin

    High Demand Specialties – Orthopedics

    There are currently about 600 medical office projects under way across the country. More than 15 percent of those projects include orthopedics. Why do so many projects include this specialty?
    September 26, 2019
    Elisa Freeman

    Errath & Haslam Named 2020 MREIF Co-Chairs

    Revista is thrilled to announce that Andrew Haslam, Chief Asset Officer for Providence St. Joseph’s Health System and Tom Errath, Director for Harrison Street Real Estate Capital will co-chair the 2020 Revista Medical Real Estate Investment Forum.
    September 26, 2019
    John B. Mugford

    Healthcare Realty Trust is Finding MOB Acquisition Opportunities to its Liking

    The country’s healthcare-focused REITs have always been, and are likely to continue to be, an important investor group in the medical office building (MOB) acquisitions sector.
    September 26, 2019
    Hilda Martin

    2019 Continues with Flurry of Hospital Deliveries

    While MOB transaction activity might have cooled somewhat and MOB construction remains steady, deliveries of hospital projects have been on a spike. Based on projects that have either opened or are scheduled to open by the end of the year, we will be adding roughly 35 million square feet to inventory in 2019.
    August 28, 2019
    John B. Mugford

    MOB Q2 Sales Drop 29 Percent From a Year Ago…But Sales Still Have a Chance to Top $10 Billion in 2019

    There’s plenty of talk in the medical office building (MOB) sales sector that even though demand remains as high as ever for the product type, the volume has been quiet so far in 2019. Second quarter (Q2) and year-to-date MOB sales statistics compiled by healthcare real estate (HRE) data firm Revista, which provides a variety of HRE data to subscribers, confirm this notion.
    September 27, 2018
    Hilda Martin

    Medical Office Sales Volume Still High, but Buyers are Changing

    As REITs pull back on acquisitions and focus more on refining their portfolios, private equity groups have more than taken up the slack. Total healthcare real estate transaction volume may have cooled ever so slightly - but not much - and so far this year, private investor buyers are making up 76% of that total.
    September 24, 2018
    John B. Mugford

    REITS, including DOC, are disposing of assets so far in 2018

    The country’s largest, publicly traded REITs have long been the MOB sector’s steadiest, most prolific buyers of MOBs. Even the REITs, however, need to cull their portfolios at times, disposing of assets for a variety of reasons that can include exiting a certain market where they do not have a big of presence to provide economies of scale and selling assets that are not “core” to their strategy.
    August 23, 2018
    John B. Mugford

    LEED is not necessarily a widespread goal for MOBs, but ‘green’ trends, including WELL, are emerging

    When we at Healthcare Real Estate Insights learned that gaining LEED certification from the U.S. Green Building Council is no longer a widespread goal for healthcare facilities and MOBs, we decided to ask a healthcare architect about the current status of “green” design trends.
    August 23, 2018
    Hilda Martin

    Revista Releases Mid Year Transactions Report

    The Mid-Year Revista transactions report has been released and is available to subscribers. Check out some of the highlights!
    August 22, 2018
    Hilda Martin

    Metro Highlight – Minneapolis

    This unassuming market is number 2 in terms of outpatient building deliveries and 4th for total deal volume. Even rent growth has been consistently surpassing the national average.
    July 26, 2018
    John B. Mugford

    An HRE firm finding opportunity, growth in forming partnerships with capital sources

    According to numerous professionals involved in healthcare real estate (HRE), large capital sources, including foreign investors, have a record amount of “dry powder” they are anxiously looking to invest in medical office buildings (MOBs). All of this interest presents opportunities for experienced, well-known HRE development, management and investment firms that perhaps do not have unlimited funds to acquire properties. Such firms can tap into all of that available capital by forming joint venture (JV) partnerships with large investors to acquire and/or develop MOBs and, perhaps, other types of healthcare properties.