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.
Much has been made of private investors controlling the buying landscape in recent years. According to Revista, private investors have increased their share of overall MOB buying activity from 55% in 2019 to 69% in 2020 and 70% YTD in 2021.
A lasting conversation among investors in the MOB sector has been the choice between On campus MOB investments and Off campus MOB investments.
One of the drivers of the slowdown in activity is the volume of mortgage financing. Revista tracks recorded mortgage financing for the almost 50,000 medical office buildings in its database.
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.
In 2020, things are certainly changing a mile a minute. But let's take a look back to 2019 and the investors who most actively acquired MOBs. Welltower takes the title acquiring $2.2 billion throughout the year, followed by MB Real Estate, Montecito and Anchor Health Properties.
A little over a month ago things were business as usual within the world of healthcare real estate. The Revista Medical Real Estate Investment Forum had just wrapped up with healthy growth in attendance and many attendees were speaking of another year ahead of continued growth in transaction volumes.
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
Revista has posted its 2017 Year End Transactions Reports for subscribers to its data service. By most accounts, 2017 was a record year for the sector in terms of transaction volume. Overall $21.8B worth of hospital and medical office real estate traded hands in 2017.
Transaction volumes have been steadily rising for the past few years. Revista began tracking property transactions in 2014 and volumes in that year were $8.9B for MOBs