While there is some concern and uncertainty about what the next year holds for the country’s healthcare system, some of the top professionals involved in healthcare real estate are quite bullish about their business prospects for 2018.
The table below shows the median price per square foot (PPSF) for medical office buildings (MOBs) that have a surgery center and do not have a surgery center and the resulting premium.
Doctor visits will increase 217.6% faster than the population in Los Angeles, Orange, Riverside, San Bernardino, and San Diego Counties. That’s according to an analysis prepared for the California Hospital, Outpatient Facilities & Medical Office Building Summit in Downtown Los Angeles on December 13.
Is the speculative MOB market overheating once again? Data from Annapolis, Md.-based research firm Revista indicates that it could be, as the amount of speculative MOB space, or space not affiliated with health systems, has reached a four-year high point when compared to health system-affiliated space.
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.
Revista has posted the Mid -2017 Top 50 Metro Rankings Report for Medical Real Estate to its subscriber portal.
Office-Meds can often present challenges for healthcare practices such as parking and access, among others. As such, the ratio of Office-Meds to MOBs can be an important stat to monitor market by market
In 2013, there were 271.6 million insured and 1.3B square feet of MOB space in the US..
Recent years has seen the healthcare real estate transaction world more or less controlled by real estate investment trusts (REITS). Healthcare REITs have enjoyed a long run of comparatively low priced capital with ready access to various forms of debt financing.
Overall, Revista reports the total construction pipeline at $97.1 Billion at year end 2015; this is up 12% from $86.7B during the first half of 2015.