September 28, 2017
Mindy Berman

Look at the Hot Medical Office Money!

By Mindy Berman, Managing Director at JLL

2.JLL Acquisition Volume chart_9.28.17

 

  • Public MOB-specialist REITS were the top buyers in early 2017 by a long stretch – their share prices were nicely rewarded given the stable and durable income profile of medical office.
  • Healthcare Trust of America and Physicians Realty Trust were the most prolific with total acquisitions of $3.4B – nearly two-thirds of 1H 2017 sales of $5.4B (MOBs larger than 25,000 SF) – driven by $2.2B of Duke Realty’s healthcare assets.
  • Institutional managers remain very active given high levels of fundraising focused on healthcare and medical office.
  • 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.
  • Collectively, these investor groups represented 83% of all MOB sales in the first half, the highest concentration ever, signaling that investment capital is following experience.

 

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