437 MOBs Totaling $4.38B Closed in Strong Third Quarter 2021

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

Medical Office Building (MOB) sales saw a flurry of transactions during the third quarter of 2021, with a 103% increase in transaction volume compared to the third quarter of 2020. Year-to-date transaction volume through the third quarter has also increased by 13% compared to the first three quarters of 2020. With more investors entering the MOB space, third-quarter cap rates compressed to 6.2%. The tightening market drove the average price per square foot ($/SF) to $377—the highest it has been in the past five years.

The third quarter of 2021 saw the third-highest quarterly volume over the past five years, as 437 MOB properties closed during the quarter. States with the most third-quarter activity included California, Georgia, and Texas, which made up for 33% of the total transaction volume. The largest single MOB property transaction was 153 Townsend Street in San Francisco, which sold to Ellis Partners for $231 million, or $1,375 per square foot.

Current Conditions

Average Cap Rate – 6.2%

Average Deal Size – $10.0M

Average Price Per SF - $377

Largest 3Q21 MOB Sales Transactions


Source: RCA

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