Hospital construction across the US is in the midst of a delivery spike as many projects, both new hospitals and additions, open this year. As of the end of 2018 Philadelphia had the largest under construction hospital pipeline of any metro with 4.4 Million square feet and 14 projects under construction, almost double the square footage of the runner up, Washington DC.
Overall transaction volumes for Medical Office Buildings (MOB) were down in 2018 versus 2017. According to Revista’s Year End 2018 Medical Real Estate Transactions report
SAN FRANCISCO– Every medical office building (MOB) development project comes with some risk.
But for the first time in its history, White Plains, N.Y.-based Seavest Healthcare Properties LLC took on what can be considered a very big risk concerning a city’s entitlement, or land use approval, process in order to repurpose an existing building to medical.
Medical office sales in 2018 remained vibrant as cyclical real estate investment trends drove investor interest to stable income-producing properties such as healthcare with strong and long-dated tenancy. 2018 activity reinforced the acceptance of medical office coming out of the shadows of alternative investments.
SAN DIEGO– For the fourth straight year, medical office building (MOB) sales in 2018 topped $11 billion, providing another indication that the sector continues to garner strong demand from a wide and ever-growing number of investors and investor types.
2019 is expected to be a big year in terms of hospital project completions and the Sutter CPMC campus on Van Ness and Geary in San Francisco, opening Saturday, March 2nd, is one of the largest deliveries.