November 10, 2016
Hilda Martin

REITs Expanding Ownership in MOBs

We have analyzed recently how private investors are buying substantially more healthcare real estate than they have previously, and how they are taking up a larger percentage of buyer activity. To look at the whole picture, we need to look at how much these groups are selling as well. How is the ownership landscape changing? Below is a pie chart showing the ownership makeup of all the outpatient buildings in our database. As you can see, the majority is user owned. REITs account for 10% of inventory and private investors represent 8%. The chart below that shows each group and their annual net investments in outpatient healthcare real estate. Both private equity and healthcare systems are net sellers – they are selling more than they are buying and therefore their piece of the pie is shrinking. REITs on the other hand, are positive by $2B-$4B annually. Based on this information, we will likely see the REIT ownership piece expand over time. Keep in touch for the next update to find out!

 

MOB Ownership by Square Feet  (All Inventory)  

Owner Chart

 

 

TTM Net MOB Investments (Total $ Bought – Total $ Sold)

Net Investments