Late March through April saw the onset of the Covid-19 Pandemic which shutdown much of the US economy. The Physician Office and Medical Office Sectors, which had historically proved ultra-resilient to economic and other shocks was not immune to the pandemic related shutdowns.

The fallout from the COVID-19 pandemic has taken its toll on the country’s healthcare systems as well as the healthcare real estate (HRE) sector, even though the industry and property type continue to show resiliency.

Phoenix is an investor favorite for sure. While nationwide roughly 65% of medical office space is user owned, in Phoenix only 30% is user owned. A significant driver of this is how incredibly fast Phoenix is growing.

While the total MOB sales volume for Q2 has yet to be finalized, it is likely to show a significant decrease from previous quarters due to the effects of the COVID-19 pandemic.

One of the drivers of the slowdown in activity is the volume of mortgage financing. Revista tracks recorded mortgage financing for the almost 50,000 medical office buildings in its database.

Please take our survey on the ongoing impact on leasing and property management from the Covid-19 pandemic. Please make all responses as relevant to your medical office buildings only. All submissions are..

Many economic signals rebounded in May of 2020. The equities markets, housing markets and overall employment markets all showed sharp pullbacks in March and April only to rebound sharply in May. Among the measures is Ambulatory Services employment.

A weekly running sum of medical office volume through April 2020 reveals that volume is slowing but that overall, total volume is still running ahead of 2019.

It looks as if the first quarter (1Q) might’ve been the calm before the storm when it comes to MOB sales.

In 2020, things are certainly changing a mile a minute. But let's take a look back to 2019 and the investors who most actively acquired MOBs. Welltower takes the title acquiring $2.2 billion throughout the year, followed by MB Real Estate, Montecito and Anchor Health Properties.

Based on planned projects, a slow down in starts in the beginning of this year was expected. But for those scheduled starts, even into March and April, projects moved forward with few exceptions. Projects scheduled to open, however, have a different story.

verall, the report shows little impact from the Covid-19 pandemic. The chart below shows key aggregate same-store year over year growth rates for key MOB metrics.

At a time when MOB sales have slowed considerably as a result of the COVID-19 pandemic, it was reassuring to see a good-sized transaction take place in recent weeks.

Despite mounting stay-at-home orders and market turbulence throughout the month of March, medical office building sales ended the quarter up from a year ago. Want access to data as it happens? Subscribe to Revista to search building sales as soon as Revista Research enters them in our Transaction Comps tool.

Revista has developed 2 short surveys in response to the Covid-19 pandemic’s impact on your business. One survey is geared towards owners and managers of medical real estate and the other is geared towards investors and those involved in the investing in medical real estate.

Outpatient Starts rose significantly in 2019. See table below but 30.9 MSF was started in 2019 compared to 23.1 MSF in 2018 (an increase of 34%). Developers also gained a higher share of the starts activity in 2019.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Taken together, the Hospital and MOB sector is valued at $1 Trillion

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?

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.

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.

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.

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.

Colliers-Houston provides updates about the Texas Medical Center, changes and growth regarding the numerous health systems, cutting-edge hospital design, new MOBs, growth of clinics' sizes, and notable healthcare property sales in Houston.

Prior to the start of 2018, several members of the Editorial Advisory Board (EAB) of Healthcare Real Estate Insights™ predicted that the sector would see some transactions in which health systems would buy medical office buildings (MOBs) that they are leasing from third-party owners.

Continuing focus on high medical office sales activity might lead one to wonder where all this activity is occurring. In 2017, more than 25% of sales volume was represented in only 5 metro areas. Who's leading the pack?

Revista is pleased to announce the addition of three new executives, Randal Brand, Dan Eppley and Andrew Haslam, to its distinguished Advisory Board. Randal Brand has for the past nine years been the Director of Facilities and Support Services for Seattle, Wash.-based The Polyclinic, an independently owned physician multi-specialty medical group with over 240 physicians and providers in 500,000 square foot of space in 12 locations. One of Mr. Brand’s major milestones was project management for the aggressive 18-month development of The Polyclinic’s flagship $55 million, 205,000 square foot location at Madison Center. Dan Eppley, a Senior Vice President at Capital One Healthcare, joins his Capital One colleague Erik Tellefson on the Revista Advisory Board. Mr. Eppley is a tenured healthcare finance and real estate professional with more than 20 years of experience. He joined GE Healthcare Financial Services in 2006 and held various leadership positions with its real estate group until Capital One acquired the business in 2015. Mr. Eppley currently leads the underwriting of real estate transactions for medical office, seniors housing and skilled nursing. Andrew Haslam, Chief Asset Officer, Real Estate and Construction, Providence St. Joseph Health, also has joined the Revista Advisory Board. He has experience in various healthcare settings, including critical access hospitals, corporate services, health insurance and real estate. Mr. Haslam currently has oversight of more than five regions of real estate professionals, and the Providence Health & Services portfolio of over 22 million square feet, 3,000 leases and more than 900 buildings with annual lease responsibilities of nearly $200 million. Revista relies on the industry knowledge and experience of each of its advisory board members to help drive the growth and future products it will provide to the medical real estate industry.

Revista is pleased to announce that attendance at its 2018 Medical Real Estate Investment Forum (MREIF) was up more than 60% from last year’s event. More than 320 industry executives were in attendance at the Miami Marriott Biscayne Bay in Miami January 28-30.

Transaction volumes have been steadily rising for the past few years. Revista began tracking property transactions in 2014 and volumes in that year were $8.9B for MOBs