H2C INDUSTRY IN­SIGHTS • REAL ESTATE
 

4Q20 Medical Office Building Report

Medical Office Building Values Resilient Through Volatile Year

March 2021

Medical office cap rates reached historic lows as demand for medical office buildings remained strong in a supply constrained market.

Introduction

Few asset classes have demonstrated the resiliency that medical office building (“MOB”) values have shown in 2020, a year that was unlike any other due to the impact of the COVID-19 pandemic. An H2C analysis shows that while COVID-19 decimated valuations of hotel properties, retail, and senior housing, average cap rates for MOBs hit an all-time low of 6.57 percent, while average price per square foot exceeded $300 for the first time. Total MOB transaction volume in 2020 reached $11.3 billion, marking the seventh consecutive year with over $10 billion in volume. However, MOB sales volume was 14 percent lower than in 2018 and 2019. (See Figure 1.)

02 2020 - Q4 MOB Report.png

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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

 

Kyle E. Hopkins

Vice President 

858.434.1163

khopkins@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

 

Evan T. Gaines

Analyst

212 257 4534

egaines@h2c.com

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