November 21, 2017
Mike Hargrave

Medical Real Estate Transaction Activity at Record Levels , Will it Continue?

The medical real estate sector is seeing increasing levels of transaction activity, particularly across hospital real estate and medical office buildings.  The graph below details the general trend but preliminary data from Revista for 3Q17 shows annual (TTM) transaction volume of $5.7B for hospital real estate and $14.1B for medical office buildings.  That’s an increase in transaction volume of 73% for hospitals and 48% for MOBs compared to 3Q16.  This is a record level of activity within Revista’s database and also compared to other historical industry reports.  Volume has been buoyed by focused MOB investors such as Healthcare Trust of America ($2.7B in acquisitions YTD in 2017) and Physicians Realty Trust ($1.1B).  But the nations largest hospital REIT, Medical Properties Trust has also been active closing on $2.2B of hospital and associated real estate.  Hospitals have also been active acquirers during the previous 12 months closing on over $4.3B of hospital and MOB real estate, according to Revista.  A healthy supply of capital and an even playing field have also been helping to drive volume, according to a recent webcast provided by Revista.

Volume Trends - All Medical Real Estate

 

 

 

 

 

 

 

 

Will this level of transaction activity continue?  To find out, attend the 2018 Medical Real Estate Investment Forum and the general session, Capital Markets 2018: An Industry Executive Panel Discussion.  The panel will dig into the outlook for transaction volumes in 2018.  The panel includes the industry’s leading providers and allocators of capital including Steve Hamner, EVP and CFO of Medical Properties Trust (NYSE: MPW), Robert Milligan, CFO of Healthcare Trust of America (NYSE: HTA), James Seymour, Managing Director, Capital One, Peter Westmeyer, President & Managing Principal, MBRE Healthcare, and Peter Martin, Managing Director, JMP Securities, who will moderate.   To register and for more information on the 2018 MREIF please visit http://www.revistamed.com/events/national-forum.