GLOBAL HEALTHCARE SERVICES

NEWMARK

303 MOB Transactions Totaling $2.75B Closed in Q2 2021

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


Medical office building (MOB) transactions in the second quarter of 2021 were up 19% year-over-year. The market saw an increased focus on the property type, and as more opportunities were marketed, cap rates increased slightly from the first quarter of this year. The average cap rate was 6.5%, ten basis points lower than the second quarter of 2020 and very similar to the average cap rate in the second quarter of 2019. The tightening of the market drove the average price per square foot ($/PSF) to $331, which is the highest Q2 $/PSF in the past five years.


Three hundred and three MOB transactions closed in the quarter. The largest single property transaction was Ventas’ sale of Pomerado Hospital Outpatient Services Pavilion in San Diego, CA. Healthcare Realty acquired the property for $116.5 million, or approximately $677/SF.


Overall, transaction volume has rebounded since last quarter; increased supply coupled with the increase in capital allocations to the medical office building property type drove cap rates lower and values higher.



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Source: Real Capital Analytics

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