As REITs pull back on acquisitions and focus more on refining their portfolios, private equity groups have more than taken up the slack. Total healthcare real estate transaction volume may have cooled ever so slightly - but not much - and so far this year, private investor buyers are making up 76% of that total.
The country’s largest, publicly traded REITs have long been the MOB sector’s steadiest, most prolific buyers of MOBs.
Even the REITs, however, need to cull their portfolios at times, disposing of assets for a variety of reasons that can include exiting a certain market where they do not have a big of presence to provide economies of scale and selling assets that are not “core” to their strategy.
The Mid-Year Revista transactions report has been released and is available to subscribers. Check out some of the highlights!
According to numerous professionals involved in healthcare real estate (HRE), large capital sources, including foreign investors, have a record amount of “dry powder” they are anxiously looking to invest in medical office buildings (MOBs).
All of this interest presents opportunities for experienced, well-known HRE development, management and investment firms that perhaps do not have unlimited funds to acquire properties. Such firms can tap into all of that available capital by forming joint venture (JV) partnerships with large investors to acquire and/or develop MOBs and, perhaps, other types of healthcare properties.
In general, health systems are choosing to build hospitals with lower bed counts. Technology, demand and reimbursement changes are all pressures that shift the focus to patient experience, advancing technology, and wellness and preventative medicine. This translates into more outpatient services, private rooms and fewer beds.
Following a record year for transactions when $16.6B worth of MOBs traded hands, overall volume is showing signs of moderating through the first 2 quarters of 2018.
One of the largest projects in the Revista database is about to open on June 24th after more than a decade of careful planning and execution.
JLL released their 2018 U.S. Healthcare Real Estate Outlook today covering the hottest trends happening in the medical real estate industry currently, plus a look forward at what is coming for the rest of the year. The document includes many charts and graphs with data and information from Revista and other sources throughout.
As the country’s health systems look to grow their ambulatory networks – which one well-known healthcare consulting firm says they must do in order to survive in today’s environment – the main property that can help them do so remains the tried-and-true medical office building (MOB).
As the start of higher interest rates have entered into 2018 economic data, Medical Office REIT share prices have pulled back implying their portfolio values have also fallen...