GLOBAL HEALTHCARE SERVICES

Blog and News

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

Forty-eight medical office building transactions closed in the U.S. in March, totaling over $513 million and 1.8 million square feet. The average cap rate in March held steady from the prior month at 6.6%. California had the most medical office building transactions with 12 (24.5% of total), followed by Texas with 5 sales (10.2% of total). Texas also saw the largest transaction in March— Harrison Street’s $115 million acquisition of MD Anderson. The average transaction size was $13.5 million. Portfolio sales saw an increase with 7 transactions for the month and an average size of $13.5 million, up from 1 p...

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Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Fifty-eight medical office building transactions closed in February, totaling more than $463 million and 2.18 million square feet. California had the most medical office building transactions with nine sales (15.5% of total), followed by Texas with seven sales (12.1% of total). The average deal size was $10.7 million. The largest transaction was the only portfolio transaction of the month: Urban Edge acquired Kingswood Plaza II, a 109,623 square foot building for $76 million. The largest single property transaction was ShareMD’s acquisition of an approximately 490,000 square foot facility in Florida ...

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Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Fifty-one medical office building transactions closed in January, totaling over $371 million and 1.64 million square feet. Texas had the most medical office building transactions with 8 (15.7% of total), followed by California with 7 sales (13.7% of total). The average deal size was $9.5 million at $321 per square foot. The largest single property transaction was Crescent Heights’s $54.25 million acquisition of the Wilshire Center Building, followed by the Taj Mahal Medical Center’s $42 million acquisition by Healthcare Realty Trust. There were 11 portfolio transactions; Welltower’s acquisi...

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Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

106 medical office building transactions closed in December, totaling over $1.4 billion or 5.026 million square feet. California had the most medical office building transactions with 16 (15.1% of total), followed by Texas with 11 sales (10.4% of total). The average deal size was $16 million. Welltower’s $786 million acquisition of a Hammes Partners 29-building portfolio was the largest portfolio transaction; Westbrook Partners $33.9 million acquisition in San Diego was the largest single property transaction during the month, according to Real Capital Analytics.

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Source: Real Capital Analytics, as of ...

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Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

187 medical office building transactions closed in September, totaling over $608 million or 3.04 million square feet. Texas had the most medical office building transactions with 18 (9.6% of total), followed by Florida with 16 sales (8.6% of total). The average deal size was $4.4 million. Menashe Properties’ $112.9 million acquisition of the Medical Dental Building was the largest transaction during August, according to Real Capital Analytics.

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Source: Real Capital Analytics, as of October 25, 2019

Article commentary by: Jessica Moore, Assistant Financial Analyst, Global Healthcare Services

Fifty-six medical office building transactions closed in August, totaling over $444 million or 2.243 million square feet. California had the most medical office building transactions with 8 (14.29% of total), followed by Arizona with 6 sales (10.71% of total). The average deal size was $10 million. Rabsky Group’s $95 million acquisition of Maynard Building was the largest transaction during August, according to Real Capital Analytics.

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Source: Real Capital Analytics, as of September 25, 2019

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

Sixty-five medical office building transactions closed in July, totaling over $319 Million or 1.959 million square feet. Texas had the most medical office building transactions with 8 (12.31% of total), followed by Georgia with 7 sales (10.77% of total). The average deal size was $6.2 million. Harrison Street’s $29.4 million acquisition of Summit Orthopedics was the largest transaction during July, according to Real Capital Analytics.

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Source: Real Capital Analytics, as of August 26, 2019

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

April 2019:

83 medical office building transactions closed, totaling over $470.2 million or 2.371 million square feet. California had the most medical office building transactions with 15 (18.07% of total), followed by Florida with 9 sales (10.84% of total). The average deal size was $7.23 million. MB Real Estate’s $30.2 million acquisition of 3640 Medical Arts & Conference Center was the largest transaction, according to Real Capital Analytics.

May 2019:

126 medical office building transactions closed, totaling over $1.468 Billion or 5.339 million square feet. North Carolina had the most medical office buildin...

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

Sixty one medical office building transactions closed in February, totaling over $375.5 million or 1.545 million square feet. New York had the most medical office building transactions with 10 (16.3% of total), followed by California with 6 sales (9.8% of total). The average deal size was $6.2 million. CenCal Health’s $30.5 million acquisition of 4050 Calle Real in Santa Barbara, CA was the largest transaction, according to Real Capital Analytics.

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Source: Real Capital Analytics, as of April 18, 2019

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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