In recent weeks we've seen significant volatility in the stock market along with increasing fears of a recession. After all, this is now the longest market expansion in history. It can't continue forever, right? MOBs have long been considered somewhat insulated from market shifts - but what does the data say?
2019 MOB deal volume continues the cooling trend after coming off historical highs in 2017. While total volume may be down, a theme continues - private investors represent the greatest percentage of acquisitions.
In the past twelve months, over 21 million square feet of medical office space have been delivered across the country. More than 35% of that has been condensed in 10 markets.
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..
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.
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
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.
Attendees of this year’s Revista Medical Real Estate Investment Forum (MREIF) in San Diego received take home data briefs as a part of their attendance. One such brief profiled several interesting insights regarding transaction activity
Carmel, Indiana, located in the northern suburbs of Indianapolis, has become a hot target of healthcare providers and associated real estate developers over the past few years. Revista is tracking several in progress and planned medical real estate developments sponsored by difference providers and developers.