Highlights from the Q3 MOB Market

Last week, Revista, the website that specializes in healthcare properties, had a call with members to review the results of the third quarter of 2021. These are some of the highlights:

• Quarterly sales of $4.6 billion for MOBs were the second-highest total since Q2 2017 when they were at $4.9 billion.
• The sector expects this year to record seven consecutive years of sales over $10 billion.
• Cap rates remained low, averaging 6.3 percent.
• Portfolio sales represented 63 percent or $2.9 billion of the total for Q3.
• Both MOBs and hospitals each have a total of approximately 1.5 billion square feet nationally.
• Hospitals currently total 5,777 valued at approximately $642 billion.
• MOBs currently total 36,462, valued at approximately $460 billion.
• Private equity was the most active investor type purchasing 75 percent, with REITs coming in second with 21 percent of purchases.
• Occupancy is over 91 percent and close to three million square feet were completed in the quarter.
• The NNN rent average was $23.05 per square foot.
• The top ten markets ranked by TTM absorption/SF were:

1. San Francisco
2. Dallas
3. Phoenix
4. Miami
5. New York
6. Detroit
7. Riverside
8. Tampa
9. Atlanta
10. Chicago