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.
As we posted back in March, private equity as a group is buying significantly more medical real estate than they have previously. As we posted back in March, private equity as a group is buying significantly more medical real estate than they have previously. They also make up a greater percentage of overall volume.
Overall, the sector is performing near cyclical highs in terms of occupancy and NOI growth. The occupancy rate as of the 2nd quarter 2016 was 92.5%.
The report shows the construction pipeline is growing. The total US medical real estate construction pipeline now stands at $102.1 B which is up 5.1% from the year end 2015 figure of $97.1 B.
Orange County Medical Office Buildings have been a prized possession of real estate investors for several years. In fact, over the past several years, investors have acquired over $1.5 Billion of MOBs in Orange County.
Seattle is nowhere near the top in terms of penetration, but their sales stats over the last year trumps all in terms of total volume AND square feet sold as a percent of inventory. To top it off, these sales averaged out to the highest price per square foot in the top twenty markets...
Three 300-million-dollar hospital projects have broken ground in the last two months – and they’re outside the top 100 metros. These projects are large in scale and bring in national firms to design and manage construction.