What are the drivers of change in the medical real estate market and how will the delivery of care shift to better meet the needs of patients? Plus, patient experience is a hot and challenging topic right now - and one where facility design and operations plays an important role. How do health systems and other healthcare industry experts evaluate the market – and patients – to develop their emerging delivery strategies? Should providers focus on medical office buildings (including multi-specialty MOBs); freestanding emergency departments; urgent care facilities; surgery centers; mixed-use healthcare, office and retail facilities; or physician-owned group practice clinics, among others?
...although roughly 25% of inventory is investor owned nationally, the stats vary widely by metro. Some areas are predominantly owned by healthcare providers while other areas have a significant portion, sometimes majority, of the real estate owned by a third party - whether that be a REIT, institutional fund or private investor.
The portfolio includes several class A assets such as the Harker Heights Medical Pavilion which is 100% leased and on the campus of Seton Medical Center Harker Heights.
The Big Three healthcare REITs – HCP, Welltower and Ventas –remained disciplined with acquisitions while non-listed REIT fundraising has limited their supply of new investment capital.
In the medical office building (MOB) space, large portfolio sales involving publicly traded companies usually grab most of the headlines. Recent blockbuster deals include Physicians Realty Trust’s (NYSE: DOC) $700 million acquisition of more than 50 MOBs from Catholic Health Initiatives in 2016 and Healthcare Trust of America’s (NYSE: HTA) $2.25 billion purchase of more than 70 medical office properties from Duke Realty Corp. (NYSE: DRE) in recent months.
n 2013, the Healthcare REITs within the 2016 top owners report had funded roughly $0.5B worth of construction projects that were considered “in progress” at 12/31/2016. That $0.5B represented just 0.7% of their total gross real estate assets.