H2C INDUSTRY INSIGHTS • REAL ESTATE
Philip J. Camp
Brady R. Stern
Matthew T. Tarpley
E. Chris Byrns
Mitchell J. Levine
Stuart L. Gilbert
3333 Piedmont Road
Atlanta, GA 30305
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.
Kelly T. Duong
Hammond Hanlon Camp LLC
623 Fifth Avenue
New York, NY 10022
311 South Wacker Drive
Chicago, IL 60606
4655 Executive Drive
San Diego, CA 92121
Smaller MOBs Fuel Supply to Keep Up with Demand
posted on Nov. 21, 2019
Cap rates remain at all-time lows despite limited dollar-transaction volume in the third quarter. Significant variation in yields between regions is apparent.
The third quarter is historically a slow period of transaction activity, and Q3 2019 is no exception in terms of medical office building (“MOB”) dollar volume. In Q3, $2.7 billion in MOB transaction volume across 363 properties was recorded, compared with $3.1 billion across 300 properties in Q2.
During the first three quarters of 2019, 978 properties changed hands, marking the second-highest property volume over the past five years in that span. However, a look at the dollar volume recorded tells a different story: The $8.4 billion in MOB dollar volume recorded year to date is among the lowest in the past five years for this period.
With cap rates remaining at historical lows, these dynamics suggest that the average MOB transaction value through the first three quarters of 2019 is approximately $8.5 million, a 15 percent reduction from the three-year historic average of $10 million. The lower average pricing suggests that smaller MOBs are meeting the demand for investors when packaged with other MOBs into a portfolio.