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    The MOB Scene

    Articles and blogs on medical real estate, as well as insights into Revista data

  • April 7, 2020
    Mike Hargrave

    MOB Pricing – What the Public Markets are Telling Us

    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.
    March 26, 2020
    John B. Mugford

    MOB Sales Top $11 Billion for the Fifth Straight Year

    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.
  • March 25, 2020
    Mike Hargrave

    MOB Tenant Retention Rates Set Recent Highs in 4Q19

    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.
  • February 27, 2020
    John B. Mugford

    Amount of MOB Space Now Equals that of Hospitals

    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.
    February 26, 2020
    Mike Hargrave

    Is MOB Rent Growth Correlated to Occupancy?

    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.
    January 22, 2020
    Hilda Martin

    2019 MOB Starts Trend Toward Large, Multi-Specialty Outpatient Centers

    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.
    December 17, 2019
    Mike Hargrave

    Single Property MOB Cap Rates Creeping Up

    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.
    December 17, 2019
    Mike Hargrave

    2 Large Speculative Projects Rising in the Baltimore MSA

    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.
    November 26, 2019
    Hilda Martin

    For Community Based Building & Services, Flexibility is Key

    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.
    November 25, 2019
    Mike Hargrave

    Metro Focus – Jacksonville, FL

    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.
    November 25, 2019
    John B. Mugford

    Q3 MOB Sales Were $2.2 Billion; 2019 Total Should Top $10 Billion Once Again

    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.
    October 24, 2019
    John B. Mugford

    Kaiser Still King of Medical Real Estate Ownership; UnitedHealth Group is on the Rise

    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.
    October 24, 2019
    Mike Hargrave

    Revista Updates the Size and Scope of the Healthcare Real Estate Sector

    Taken together, the Hospital and MOB sector is valued at $1 Trillion
    October 23, 2019
    Hilda Martin

    High Demand Specialties – Orthopedics

    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?
    September 26, 2019
    Elisa Freeman

    Errath & Haslam Named 2020 MREIF Co-Chairs

    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.
    September 26, 2019
    John B. Mugford

    Healthcare Realty Trust is Finding MOB Acquisition Opportunities to its Liking

    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.
    September 26, 2019
    Hilda Martin

    2019 Continues with Flurry of Hospital Deliveries

    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.
    August 28, 2019
    John B. Mugford

    MOB Q2 Sales Drop 29 Percent From a Year Ago…But Sales Still Have a Chance to Top $10 Billion 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.
    May 24, 2019
    John B. Mugford

    Welltower – CNL’s $1.25B Boosts MOB Sales

    Deal reinforces strategy of creating value by packaging MOBs into large portfolios With MOB sales off to a somewhat slow start in early 2019, the closing of the sector’s second-biggest arm’s length deal of all time is sure to bolster the volume for the year. On May 15, Toledo, Ohio-based Welltower Inc. (NYSE: WELL), which has invested more than $6 billion in a variety of healthcare asset types since coming off the sidelines in early to mid-2018, reported that it closed on its previously announced $1.25 billion acquisition of 55 MOBs from Orlando, Fla.-based CNL Healthcare Properties, a non-traded healthcare real estate investment trust (REIT).
    May 24, 2019
    Mike Hargrave

    MOB Cap Rates Coming Off Lows

    Medical Office Building (MOB) capitalization rates are trending up from their lows set in late 2017 and early 2018. The average cap rate for MOBs was 6.7% in the 1st quarter of 2019..
    May 17, 2019
    Hilda Martin

    Metro Highlight – Charlotte

    Although 22nd in rank for population, Charlotte is one of the fastest growing cities in the nation. Over the past 10 years the population has grown almost 60%! In 2010 the population rank was only 33… Affordable housing and lower cost of living paired with rapid economic growth and a hot job market has generated a population magnet.
    April 25, 2019
    John B. Mugford

    MOB Square Footage, Total Value Rose in 2018 Annual Revista/HREI Development Report Reveals Top Developers of the Year

    The year 2018 proved to be healthy one for new medical office building (MOB) construction projects, which is certainly music to the ears of professionals involved in the healthcare real estate sector. The good news comes by way of the third annual Outpatient Healthcare Real Estate (HRE) Development Report released late last week by Revista, a research firm that compiles data for the HRE sector, in conjunction with Healthcare Real Estate Insights (HREI), which provides news and trends in healthcare facility development, financing and investment.
    April 25, 2019
    Hilda Martin

    Hospital Construction Booming in Philadelphia

    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.
    March 28, 2019
    Mike Hargrave

    The Hottest Metros in 2018

    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