GLOBAL HEALTHCARE SERVICES

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$1.6B in MOB Transactions Closed in First Quarter of 2021*

Newmark represented the largest single property transaction for the quarter

Commentary by: Mohsin Azmi, Associate Director, Global Healthcare Services

Medical office building (MOB) transactions in the first quarter of 2021 were down 58% year-over-year; however, the market saw an increased focus on the property type, and cap rates tightened across all acuity types. The average cap rate was 6.4%, ten basis points lower than the first quarter of 2020 and 40 basis points lower than the average cap rate in the first quarter of 2019. The increased focus also lifted the average price per square foot ($/PSF) to a level unseen in the past eight...

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Commentary by: Todd Perman, CCIM, Vice Chairman, Global Healthcare Services

In a report published earlier this month, Newmark’s Jimmy Hinton, Head of Investor Strategies, analyzed the recent rise in bond yields, which has been steadily increasing since November 2020. With February 2021 seeing the 10-year U.S. Treasury rise faster than any 30-day period in the past four years, it is evident that the steepened yield curve has several coming implications for commercial real estate and specifically the healthcare real estate sector.

How does this impact healthcare real estate?

Todd Perman, Vice Chairman for Global Healthcare Services advises providers and health systems, “Due to the ons...

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Commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

One hundred and seventy four medical office building transactions closed in December 2020. Even though 13 states (including DC) were without a closing in the month of December, the transaction volume totaled $1.57 billion and over 3.58 million square feet.

The largest single property transaction was Healthcare Realty Trust’s acquisition of the Saddleback Valley Medical Center in Laguna Hills, CA. HRT acquired the 135,904-square-foot property for $84 million.

The largest portfolio transaction was the Welltower/Wafra portfolio consisting of 24 properties and totaling $550 million. The second largest transaction was ...

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Article commentary by: Tina Sui, Financial Analyst, Global Healthcare Services

Eighty-four medical office building transactions closed in December 2018, totaling over $625.5 million or 2.685 million square feet. California had the most medical office building transactions with 14 (16% of total), followed by Texas with 9 sales (10% of total). The average deal size was $7.6 million. Kayne Anderson’s $74.6 million acquisition of Think Whole Person Healthcare in Omaha, NE was the largest transaction during December.

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Source: Real Capital Analytics, February 26, 2019

A total of 71 medical office building transactions closed in the month of January totaling over $664 million or 2.56 million square feet. Wisconsin had the most medical office building transactions with 12 (17% of total), followed by Texas with 10 (14% of total). The average deal size was $17.8 million, and Aurora Health Care’s $160 million acquisition from Welltower was the largest transaction for the month. Aurora Health Care was also the most active buyer with this acquisition.

(Source: Real Capital Analytics, Inc.)

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

Newmark 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 importan...

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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 regar...

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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...
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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,...

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All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

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