Commentary by Eric Murphy, Managing Director, Global Healthcare Services
Medical Office Building (MOB) transactions finished the year strong with $4.8 billion in transaction volume during the fourth quarter of 2021. This represented a 14% increase in transaction volume compared to the fourth quarter of 2020. The $4.8 billion in transaction volume is the third-largest quarterly amount over the past five years. More investors are entering the MOB asset class and as a result, cap rates compressed to 5.9% for the quarter. The tightening of the market drove the average price per square foot to $389, its highest level over the past five years.
According to Revista, 2021 finished with record-breaking MOB transaction volume totaling more than $16 billion, an increase of over $4 billion from 2020. An uptick in investment from private equity (PE) investors drove the competitive market, with 63% of total MOB sales volume represented by PE investors.
Source: Real Capital Analytics, Revista
