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Philip J. Camp                      

Principal                                    

212.257.4505                        

pcamp@h2c.com                          

 

Brady R. Stern

Director

312.508.4203

bstern@h2c.com

 

Matthew T. Tarpley

Vice President 

212.257.4516

mtarpley@h2c.com

 

E. Chris Byrns

Associate

212.257.4518

cbyrns@h2c.com

 

Mitchell J. Levine

Associate

212.257.4519

mlevine@h2c.com

 

Stuart L. Gilbert

Analyst

212.257.4506

sgilbert@h2c.com

ATLANTA

3333 Piedmont Road
Suite 725
Atlanta, GA 30305
404.937.1350

 

H2C INDUSTRY INSIGHTS • REAL ESTATE
 
MOB Pricing Holds Steady in First Full COVID-19 Impacted Quarter

  August 18, 2020  

Medical Office Building Quarterly Update

ABOUT HAMMOND HANLON CAMP LLC

Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States.  H2C’s professionals have a long track record of success in healthcare mergers & acquisitions, capital markets, real estate, and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value.  Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC.  For more information, go to h2c.com

 

H2C REAL ESTATE INVESTMENT BANKING 

The real estate investment banking professionals at H2C have successfully served as advisor for over 20 years on real estate transactions in excess of $12.5 billion nationwide.  For more information on our real estate advisory group, please contact one of the adjacent H2C professionals.

 

MEDIA CONTACT

Kelly T. Duong
Hammond Hanlon Camp LLC
858.242.4810
kduong@h2c.com

NEW YORK

623 Fifth Avenue
29th Floor
New York, NY 10022
212.257.4500

 

CHICAGO

311 South Wacker Drive
Suite 5425
Chicago, IL 60606
312.508.4200

 

SAN DIEGO

4655 Executive Drive

Suite 280
San Diego, CA 92121
858.242.4800

This is H2C’s first quarterly medical office building (“MOB”) report since the impact of the COVID-19 pandemic played out through an entire quarter of activity. Notably, H2C had one of its most active quarters in advising health systems in their monetization and disposition efforts, with over $200 million in transaction volume advised. 

 

While COVID-19 has had a dramatic impact on other asset classes, such as senior housing and retail, where values are purported to be down 20-25 percent since March 2020, the MOB sector has shown resilience in values through the quarter, with average cap rates nearly flat at 6.62 percent and average price per square foot growing to $290. MOB sales volume in the second quarter totaled $2.3 billion, the lowest second-quarter volume seen since Q2 2014; however, pricing and cap rates held firm. Also noteworthy is that first-half MOB sales volume is only down 3 percent from 2018 and 2019, thanks to a robust Q1.

Cap rates are nearly flat and values have held as demand
continues outpacing supply in desirable MOB asset class.