Hammond Hanlon Camp LLC Second Quarter Medical Office Building Report: Medical Office Building Appeal Growing and Cap Rates Compressing As Flight To Quality Takes Place
posted on October 4, 2017
NEW YORK — Once seen as an alternative real estate investment, the medical office building (MOB) segment has grown in deal volume and presence to establish itself as a target asset class. The publicity of Healthcare Trust of America’s (NYSE: HTA) $2.75 billion acquisition of Duke Realty’s (NYSE: DRE) MOB portfolio has increased the interest of new entrants and foreign capital. Because the sector’s tenancy is fueled by demographic trends of the aging population, increasing utilization of healthcare, and growing integration of hospitals and health systems, the MOBs have grown in popularity as a flight to quality takes place for investors seeking stable yield as other real estate asset classes have come under attack. We expect traditional investors and foreign capital to allocate a greater proportion of their real estate investments toward the medical office sector as they seek yield backed by investment-grade credit health system tenants.
Inside the 2Q17 MOB Quarterly Update
Key Transaction Highlights
Transaction Volume Trends
Regional Transaction Highlights
Pricing and Cap Rate Trends
Industry Rate Benchmark Trends
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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
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The real estate investment banking professionals at H2C have successfully served as advisor for over 20 years on real estate transactions in excess of $11 billion nationwide. For more information on our real estate advisory group, please contact one of the adjacent H2C professionals.
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