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.
• Adventist Health Physician's Network
• AEI Capital
• Altus Group
• Amtrust Title
• Anchor Health Properties
• Anne Arundel Medical Center
• ARCH Design, Artwork and Framing Inc.
• Array Architects
• Aurum Property Partners
• Avison Young
• AW Property Co
• Baptist Health South Florida
• Baylor Scott & White Health
• BBL Medical Facilities
• Bentall Kennedy
• Bloomberg Intelligence
2017 will have broken many records in terms of sales transaction activity in healthcare real estate, but it won’t in terms of new construction. Revista data is showing 3 consecutive years with a decrease in starts which is now also affecting total deliveries. Only 16.3M square feet was delivered in 2017, 15% less than the previous year's total of 19.3M.
While there is some concern and uncertainty about what the next year holds for the country’s healthcare system, some of the top professionals involved in healthcare real estate are quite bullish about their business prospects for 2018.
The table below shows the median price per square foot (PPSF) for medical office buildings (MOBs) that have a surgery center and do not have a surgery center and the resulting premium.
Doctor visits will increase 217.6% faster than the population in Los Angeles, Orange, Riverside, San Bernardino, and San Diego Counties. That’s according to an analysis prepared for the California Hospital, Outpatient Facilities & Medical Office Building Summit in Downtown Los Angeles on December 13.
Quick internet searches would tell you that the hospital sector is closing or shrinking due to growth in the outpatient sector. Revista data, however, paints a different picture of the hospital sector.