August 28, 2019
Mike Hargrave

The Most Active MOB Metros 3Q18-2Q19

Medical Office (MOB) transaction volume has slowed during the past year.  Within the top 50 metros Revista recorded $7.14B worth of MOB trades from 3Q18 to 2Q19.  This was down from $10.7B recorded from 3Q17 to 2Q18.  While overall transaction activity is off peak levels, investors are still favoring selected metros for buying activity.

The table below shows the 6 most active metros during the period 3Q18 to 2Q19 based on total MOB transaction volume (properties $2.5M and above).  NYC metro remains the most active with $720M changing hands during the past year.  Charlotte is relatively new to the most active markets list with over $715M worth of MOBs trading during the past year.  Los Angeles is usually among the most active and almost always sports the lowest cap rates of the most active markets – its TTM average cap rate for MOBs was 5.2 percent in 2Q19!   Other markets like Atlanta, Chicago and Dallas are consistent favorites of investors in MOBs.