Recent Trend: Larger Medical Office Buildings More Valuable Than Their Smaller Counterparts A recent report identifying MOB sales data that covers the two-year period of 2017 and 2018 shows that larger medical office buildings sold at lower capitalization rates (cap rates) than smaller MOBs during this period. However, buildings 20,000 SF and under did sale […]
A Look at the Medical Office Market for 2019 For the fourth consecutive year, medical office building (MOB) sales in 2018 exceeded $11 billion in total transactions, showing that investment demand for this sector of commercial real estate continues to remain strong. The total was a decrease from the year prior’s record-setting total of $15.8
A Look at the Medical Office Market for 2019 Read More »
The Resurgence of the Sale-Leaseback Recently, a few high-profile sale-leaseback transactions have reminded commercial real estate owners of the incredible benefits of this strategy. During the first quarter of fiscal year 2019, Brinker International, best known for its ownership of Chili’s Grill & Bar Restaurants, completed a sale-leaseback on 141 Chili’s restaurant properties for a
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Healthcare REITs Beat Broad REIT Index and Stock Market in 4th quarter 2018 U.S. Healthcare REITs returned a higher yield than did both the broader REIT index and the S&P 500 in the fourth quarter 2018 in a quarter where the S&P 500 Index posted a -13.52% return. Ending the volatile 4th quarter 2018 up
Healthcare REITs Beat Broad REIT Index and Stock Market in 4th quarter 2018 Read More »
At a time when many analysts were predicting a recession to begin in the U.S., 2018 proved to be another huge year for commercial real estate with record-setting commercial single asset sales. Office sales volume was second only to apartment deals volume. Despite record-high sale prices, the overall sales volume came within $8 billion in deals of
U.S. Commercial Property Sales Third-Highest Level Ever in 2018 Read More »
As a follow up to our article about Opportunity Zones in our December newsletter, we want to delve in a little deeper to explore the advantages of both tax saving vehicles and compare one to the other. 1031 Exchange The 1031 Exchange, sometimes called “swapping”, is the older, and more well-known of the two, tax
1031 Exchange v. Opportunity Zone Funds Read More »
Although, the US National All Property Index measuring property sales growth was a positive 6.2% from 2017, the pricing growth slipped a little from the 8.5% growth measured from the year prior. The strongest sector of commercial real estate for 2018 was apartments. The Apartment sector price growth was 8.9% year over year. The price
2018 US Commercial Real Estate Pricing Growth Down Slightly from Previous Year Read More »
Many factors are contributing to the record growth of medical office construction and absorption rates, and the expansion of this sector doesn’t look like its going to slow down anytime soon. As we’ve covered in previous articles of this newsletter, the aging baby boomer population is one large contributing factor to the continued expected high
Medical Office Demand Outpacing Development Read More »
With absorption rates continuing to meet the demand for office space in the U.S., 2019 is poised to be the tenth consecutive year of positive absorption. Although there have been increased concerns about the U.S. economy in the last several months in part due to rising interest rates and trade agreements with other countries, many
The State of U.S. Office Real Estate in 2019 Read More »
Over the past two years, there has been an increase in the percentage of medical office buildings not affiliated with a hospital or hospital system. Of the 26.7 million total square feet that was under construction in October, approximately 25% of that space is occupied by physician or other medical groups, or is being built
MOB Construction Outside of Hospital Systems Rises Read More »
