H2C INDUSTRY INSIGHTS • REAL ESTATE
Philip J. Camp
Principal
212.257.4505
Jay J. Miele
Managing Director
212.257.4515
John P. Nero
Director
212.257.4502
Brady R. Stern
Vice President
312.508.4203
Matthew T. Tarpley
Vice President
212.257.4516
ATLANTA
3333 Piedmont Road
Suite 725
Atlanta, GA 30305
404.937.1350
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
REAL ESTATE INVESTMENT BANKING PRACTICE
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
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4655 Executive Drive
Suite 280
San Diego, CA 92121
858.242.4800
MOB Transaction Volume Dips Dramatically, While Cap Rates and Pricing Remain Flat
posted on March 24, 2019
NEW YORK — Following a strong year for the medical office building (“MOB”) sector, 223 properties transacted in the first quarter of 2019, for a total dollar volume of $1.7 billion—the lowest quarterly dollar volume since the first quarter of 2014 across the lowest number of properties since the first quarter of 2016.
The steep drop in transaction volume (down 32 percent compared with Q1 2018) is noteworthy; however, it is also in line with the year-over-year volume declines for other asset types. The broader commercial office market, of which medical offices comprise approximately 19 percent, is down 35 percent year over year.
Not all data coming out of Q1 is negative, however. Average price per square foot for MOBs hit an all-time high of $303 per square foot, and average MOB cap rates crept up just 12 basis points in the first quarter, barely affecting the trailing 12-month average cap rate, which totaled 6.68 percent.