August 24, 2017
Mindy Berman

MOB Sales Continue at Furious Pace in 2017

By Mindy Berman, Managing Director at JLL

final (002)

  • Record MOB sales in the first half of nearly $5.5 billion rivaled total volume in 2012 through 2014.
  • The major reason was HTA’s $2.2 billion acquisition of the Duke Realty healthcare portfolio in June, leaving the balance of first half acquisitions at $3.2 billion, consistent with first half volume in 2015 and 2016 – years with record overall sales.
  • With additional major transactions such as the $612.5 million Meadows & Ohly portfolio in Atlanta and more in the pipeline, it’s possible that 2017 will shatter the 2015 record of $9 billion.
  • Regardless of the continued influx of fresh capital into medical office, JLL believes that the marketplace has been responsive in creating new supply, whether from developer-built portfolios like Duke Realty and Meadows & Ohly, or providers or investors.
  • New capital from investors seeking yield in a heady overall real estate investment environment puts a spotlight on the unique and enduring qualities of medical office, further solidifying the segment’s status as an institutional-quality asset class.

Copyright © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle IP, Inc. Jones Lang LaSalle Brokerage, Inc., California license # 01856260. Jones Lang LaSalle Americas, Inc., California license # 01223413.