Blog and News

The GHS Atlanta team along with Garth Hogan celebrated Todd Perman's birthday at South City Kitchen last week. A great time was had by all, Happy Birthday Todd!

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Commentary by Todd Perman, Executive Managing Director, Global Healthcare Services

Tech companies are eyeing the healthcare sector as innovation, like telemedicine and drones, mature and expose big opportunities to disrupt the status quo. We’re already seeing this trend within the industry. While it’s hard to anticipate all of the ways in which technology will impact healthcare, the article illustrates how impactful this trend could be in the near future.

Article written by Praveen Suthrom with NextServices

Every time a big boy enters healthcare, there's nervous excitement in the market.

Google entered with Verily. Apple did with HealthKit. Microsoft's always been there. With Watson, IBM makes big promises of cognitive healthcare...

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Commentary by Garth Hogan, Executive Managing Director, Global Healthcare Services

NKF Global Healthcare Services is seeing a steady rise in healthcare M&A activity and expect this trend to continue for the foreseeable future. Our access to capital and deep experience with healthcare real estate has allowed us to help clients capitalize on these trends and navigate the many challenges. In the article below, Healthcare Finance sheds important insights into what’s driving these trends.

Written by the Healthcare Finance News Staff, August 11, 2017

Healthcare mergers and acquisitions have been on tear in the past few years, as the savings tied economies of scale become even more important as margins tighten. While hospitals are merging a...

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Commentary by Garth Hogan, Executive Managing Director, Global Healthcare Services

Emergency rooms are finding it difficult to keep up with demand, even with the steady growth in urgent care centers and freestanding Emergency Departments (ED’s). According to the article, 29% of the population lives within 10 minutes of an urgent care enter, suggesting that much of the population will continue to rely on EDs. We expect this demand to lead to investments in new (and renovated) EDs that offer express admissions, fast track on minor injuries, on premises lab, technology which shows entire team lab results and patient history and flexible treatment rooms.
Healthcare Design explores this trend further in the article below.

Written by Lisa E...

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Written by: Jonathan Kesler, Global Healthcare Services

Newmark Knight Frank’s Global Healthcare Services team recently closed on the sale of the Ogden Clinic real estate portfolio located just north of Salt Lake in Ogden, UT. The four-property, owner-occupied portfolio was recently constructed and comprises 105,592 of rentable square feet. Garth Hogan, Todd, Perman, Dana Hamric and Jonathan Kesler represented the seller, Ogden Clinic Investment Company. Ogden Clinic is a dominant, independent physician group that has the capacity to serve patient needs all along the healthcare continuum.

The NKF Healthcare team led a controlled marketing process, which garnered the interest of 15 reputable, potential buyers in the first round of bidding. A review of the initial offers provided a great c...

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POST WRITTEN BY | Chuck Sudo | Forbes

The transition of healthcare real estate to a convenience-based model in recent years has been driven by two primary factors: a shift in the balance of inpatient and outpatient revenue streams, and data analysis. Taking care of patients today can be as much about technology and records sharing as it is about doctor-patient interactions.

Gensler Design Director Randy Guillot said the shift in revenue generation toward outpatient care has larger healthcare groups focusing on personalized care for the aging baby boomer market. More capital these days is being earmarked for tech and wellness-based care because boomers are demanding a personal touch with regard to access to medical records and telemedic...

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Cantor Fitzgerald
Equity Research
June 12, 2017

Gaurav Mehta, CFA | 212-915-1221 | gmehta@cantor.com

REITs

Takeaways from REITWeek 2017
Adjusting Estimates, Industry Update, Raising Price Target

Investment Summary. We attended REITWeek 2017 in New York, NY, from June 6-8, and held meetings with management teams in Industrial, Lodging, Multifamily, Manufactured Homes and Self-Storage sectors. Below we highlight sector-level themes based on those discussions.

  • Industrial REITs. Positive demand drivers include e-commerce (e.g., products staying in warehouses, last mile delivery), shortening of supply chain and an increase in manufacturing activity. Markets that could have supply pressure include Atlanta, Dallas, Miami, and Inland Empire. For 2017, we expect supply and demand to be in equilibrium. STAG (Neutral) continues to experience product flow in the acquisition market that should drive external growth, and it expects rent growth in the secondary markets to exceed that in primary markets.
  • Lodging REITs. There is cautious optimism about lodging demand. Debt markets, including CMBS lending, are relatively open, although lending is challenging for construction. Asset recycling continues for Summit Hotels (Overweight), with the company seeing products in the acquisition market, while Chatham Lodging (Neutral) could sell older assets and redeploy capital into relatively new assets.
  • Multifamily REITs. Post 1Q trends are in line or slightly ahead of multifamily REITs expectations. Although there was a decline in transaction volume in 1Q, there could be some increase in activity. Construction costs have increased and lending standards remain tight. By markets, Seattle remains strong. MAA (Overweight) continues to experience an improvement in new leasing trends and expects further improvement during the peak leasing season. Outside of acquisitions and developments, external growth includes redevelopments for MAA and preferred equity investment program for ESS (Overweight) - both at attractive returns, in our view.
  • Manufactured Homes REITs. Trends remain stable for Equity LifeStyle (Neutral), with increases in occupancy and steady rent growth and with availability of financing from Life Insurance companies, GSEs and secured lenders.
  • Self-Storage REITs. Post 1Q operating trends are in line with the companies' expectations. Same-store growth continues to moderate, but the rate of deceleration has slowed. Public Storage (Neutral) is experiencing some softness in demand, while CUBE (Overweight), EXR (Neutral) and LSI (Neutral) view demand as steady. New rent growth is modest and depends on selected markets (e.g., according to PSA (Neutral), Houston asking rents are down 20.0%, while West Coast markets are strong). Renewal rates remain stable at 8-10%. Product flow in the acquisition market is slow, reflecting a disconnect between buyer and seller expectations, and it is of lower quality. As a result, acquisition volumes could fall in 2017. Cap rates have likely expanded by 50-75bps (vs. 2016), according to PSA. Private equity remains active in the self-storage transaction market, however, and could lead to acquisitions via JV (e.g., LSI has acquired assets in a JV for $493m YTD). There is an increase in demand for third-party management, reflecting moderating growth for the private operators, and, as a result, we expect continued expansion. New supply estimates include 600-800 stores to be delivered in 2017, followed by 600-800 stores in 2018 vs. approximately 600 stores delivered in 2016, according to EXR.

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Written By Randyl Drummer | CoStar

Howard Lutnick, chairman and chief executive of Newmark Knight Frank parent company BGC Partners, Inc., (Nasdaq: BGCP), this week said he expects the planned spin-off of Newmark as a separate publicly traded company to occur in the fourth quarter.

"We would like to do the initial public offering of Newmark in this calendar year," Lutnick said this afternoon during a presentation at the Sandler O'Neill + Partners Global Exchange & Brokerage Conference in New York City.

"You can assume that's not going to be the summer because it's unlikely we'll take a company public in August, and we're not going to do it at Christmas. Somewhere in late September, October, November would be the kind of time frame we're ...

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Written By Dave Barkholz | Modern Healthcare

Finishing work on big projects in Detroit, El Paso and San Antonio, Tenet Healthcare Corp. is about to throttle back capital spending for hospitals to the tune of $150 million. Tenet's 2017 capital budget is expected to range between $700 million and $750 million. That doesn't mean the nation's third-largest investor-owned hospital company is done spending on healthcare facilities though. In fact, it's just the opposite on the ambulatory side.

Tenet plans to open 15 free-standing emergency departments or micro-hospitals over the next 18 to 24 months, as well as add urgent-care centers in its hub markets, Eric Evans, president of hospital operations, said in a recent earnings call. He added tha...

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2017 Healthcare Real Estate Outlook