H2C SPECIAL REPORT

Hammond Hanlon Camp LLC Fourth Quarter Medical Office Building Report:  A Robust Year with Double-Digit Year-Over-Year Growth — What’s Ahead?

posted on March 6, 2018

NEW YORK — 2017 was the most active year ever recorded in the medical office building (MOB) sector by a large margin, with approximately $14 billion in sales volume comprised of 1,315 properties.  The $2.5 billion increase over 2016 volume was a sharp rise for an industry that has received significant interest recently.  The 21% rise in year-over-year MOB transaction volume is in stark contrast to other asset classes.  In fact, all asset classes, other than industrial real estate, have experienced declines for two consecutive years as overall real estate transaction volume was down 7.0%.  This marks the first consecutive years of declining commercial real estate (CRE) sales volume since 2008/2009.  As highlighted in H2C’s Q2 and Q3 2017 reports, the asset class likely benefited from investors seeking a flight to quality away from retail and office sectors.

Inside the 4Q17 MOB Quarterly Update

• Key Transaction Highlights 

• Transaction Volume Trends 

• Regional Transaction Highlights

• Pricing and Cap Rate Trends

• Industry Rate Benchmark Trends

Should you have any questions or desire to discuss the sector with an H2C professional, information about the firm and how to contact us is presented at the end of the report.

Thank you for your interest in this publication.
Printed copies available upon request.