June 30, 2021
Mike Hargrave

Major California Metros Exhibit Strong MOB Fundamentals

In this post we are looking at 1Q21 Medical Office Building (MOB) performance for major metro areas located in California.  Generally the California metros outperform the top 50 Metro benchmark in several key areas.  On occupancy, 3 of the 4 largest California metros exhibit higher MOB occupancy compared the top 50 benchmark.  San Jose is the highest ranked CBSA for occupancy at 94.6% as of 1Q21 and San Francisco is not far behind at 94.1%.  On Rent Growth, San Francisco and San Diego both outperform the Top 50 benchmark while Los Angeles and San Jose were underneath the benchmark as of 1Q21.  And on TTM transaction volume, Los Angeles was the top ranked metro as of 1Q21.  Its volume of $789.3M represented over 10% of the total transaction volume in the top 50 metros.

CBSAOccupancy Rate TTM (%)SS Rent Growth (%)TTM Transaction Volume
Los Angeles91.71.8$789.3M
San Francisco94.12.5$29.2M
San Diego91.42.5$349.4M
San Jose94.60.9$174.0M
Top50 Metros91.51.9$6.9B
1Q21 MOB Key Stats by market; Data Source Revista