The Hottest Metros in 2018
Overall transaction volume for Medical Office Buildings (MOB) were down in 2018 versus 2017. According to Revista’s Year End 2018 Medical Real Estate Transactions report, MOB transaction volume was $11.9B in 2018 compared to $15.8B in 2017. While volume was down in 2018, it was on par with 2016’s volume of $11.7B and 2015’s volume of $11.8B.
So what markets were investors targeting in 2018? Below are the 5 most active MOB markets ranked by 2018 MOB transaction volume. New York’s volume in 2018 was $1.3B which was 2.75x 2017’s volume. Houston was the 2nd most active market in 2018. The $886M of transaction volume in Houston was buoyed by LaSalle’s ~$405M purchase of the Memorial Hermann Medical Plaza. Harrison Street Realty capital drove Chicago’s volume of $693M with their purchase of the DuPage Medical Group Portfolio. And Milwaukee’s volume of $400M was in large part due to Aurora Healthcare’s purchase of ~18 MOBs from Welltower.
Most Active MOB Markets 2018