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.
Revista has posted a research paper titled “2021 The Off Camus Debate”. The research piece outlines the movement of healthcare towards off campus medical office buildings and provides analysis on an off campus group of MOBs
Despite the challenges this year with COVID-19, medical office projects continue to break ground. Interestingly, the proportion of 3rd party developed projects starting is increasing as the year progresses.
Last year 77 medical office projects started that will be over 100,000 square feet when completed. That's quite an uptick over previous years when we averaged less than 50.
So much of the conversation in the industry right now is about placing medical services out into the community to be more convenient and cost effective for patients. But what is that community going to look like in 10 years? 20 years? Flexibility becomes the name of the game.
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
Medical Office Building (MOB) capitalization rates are trending up from their lows set in late 2017 and early 2018. The average cap rate for MOBs was 6.7% in the 1st quarter of 2019..
Following a record year for transactions when $16.6B worth of MOBs traded hands, overall volume is showing signs of moderating through the first 2 quarters of 2018.
North Shore LIJ Health System of Great Neck, NY teamed up with Waterstone Development Group to purchase 600 Community Drive in Manhasset, NY
The following are recent medical office buildings from Revista's northeast region that traded hands:
Lockwood Medical Offices