Are MOB rents significantly higher when in close proximity to a hospital? To isolate the effect a property’s distance from the nearest hospital has on rent, we looked at a dataset of MOB’s that are not affiliated with a hospital, nor directly on a hospital campus.
Independent physician groups continue to monetize their real estate assets, reliably selling $1B+ in assets annually. As competition remains fierce for deals in the sector, this segment continues to be a source of opportunity for investors.
After finishing out 2020 with one of the strongest volume quarters in recent years, 2021 is off to a quiet start. $1.8B in MOB transactions closed in the first quarter, down from $3.3B in 1Q20 and in line with 1Q19. On a TTM basis, we are now running at just $10B in volume.
In the past, the lion's share of MOB development has been self developed by the hospital system or provider. In fact historically, third party development has only represented around a quarter of medical office square feet started. Since 2019, we've been seeing a shift in this dynamic with more and more projects moving forward with a developer/investor driving the project.
A lasting conversation among investors in the MOB sector has been the choice between On campus MOB investments and Off campus MOB investments.
A weekly running sum of medical office volume through April 2020 reveals that volume is slowing but that overall, total volume is still running ahead of 2019.
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
Overall transaction volumes for Medical Office Buildings (MOB) were down in 2018 versus 2017. According to Revista’s Year End 2018 Medical Real Estate Transactions report
The portfolio includes several class A assets such as the Harker Heights Medical Pavilion which is 100% leased and on the campus of Seton Medical Center Harker Heights.
Orange County Medical Office Buildings have been a prized possession of real estate investors for several years. In fact, over the past several years, investors have acquired over $1.5 Billion of MOBs in Orange County.