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252 Medical Office Building Properties Totaling $2.9B Closed in Q4 2022

Commentary by: Eric Murphy, Managing Director, Global Healthcare Services


Medical office building (MOB) transactions slowed down again in the fourth quarter of 2022. Overall, the fourth quarter saw 252 medical office buildings transact totaling $2.9 billion. The average cap rate increased slightly to 6.1% compared to previous quarters of 5.8%. The average deal size for the properties closing in the fourth quarter was $11.8 million with an average price per square foot of $335.


Current Conditions


- Avg Cap Rate – 6.1%


- Avg Deal Size – $11.8M


- $ / SF - $335


2022 Recap


According to Revista, 2022 ended with $15.7B in total transaction volume with an average cap rate of 5.9%. Given the current market conditions with rising interest rates, the impact to cap rates has been significant. Revista reported the four-month moving average cap rate was 5.66% at the beginning of 2022; it ended at 6.45% in December, an increase of 80bps.


Source: MSCI Real Capital Analytics


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