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

The first quarter healthcare mergers and acquisition transactions see a significantly large transaction size compared to last year's first quarter and one of the largest average seller sizes in the past ten years. Kaufman Hall reported in their Healthcare Merger & Acquisition Activity Report: Q1 2021 that the average seller size by revenue is $676M. The overall number of transactions for this first quarter is significantly less than last year, with 13 announced transactions for this quarter as compared to # for the same period last year. The small number of transactions is offset by the type of large transactions that h...

Commentary by: Todd Perman, CCIM, Vice Chairman, Global Healthcare Services

One of the more recent topics within the healthcare industry is telehealth and its potential disruption of the healthcare real estate environment. I wanted to share my perspective and insights on this trend based on a career history and experience working within and around telehealth.

For the past three decades, changes within the healthcare industry have happened very slowly and deliberately. The pendulum of change would often swing back and forth, consistently resulting in a slow but steady change. With the arrival of COVID-19, the healthcare industry experienced change at warp speeds. Approvals for telehealth visit ...

$1.6B in MOB Transactions Closed in First Quarter of 2021*

Newmark represented the largest single property transaction for the quarter

Medical office building (MOB) transactions in the first quarter of 2021 were down 58% year-over-year; however, the market saw an increased focus on the property type, and cap rates tightened across all acuity types. The average cap rate was 6.4%, ten basis points lower than the first quarter of 2020 and 40 basis points lower than the average cap rate in the first quarter of 2019. The increased focus also lifted the average price per square foot ($/PSF) to a level unseen in the past eight...

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...

With over $1.4 billion in U.S. MOB investment sales volume for 2020, Newmark leads top brokerages and captured a market share of more than 19%.

"As providers continue to experience an unprecedented capital markets environment focus on preserving capital post-COVID-19, we anticipate the continued use of third-party capital for development and growth. Evaluating capital sources and deciding to own or lease will also bolster volume and growth for the medical office sector in 2021." - Todd Perman, CCIM, Vice Chairman, Global Healthcare Services

"COVID-19 certainly created a challenging transaction climate, but it also accelerated the allocation of capital to medical office real estate for invest...

Commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

One hundred and seventy four medical office building transactions closed in December 2020. Even though 13 states (including DC) were without a closing in the month of December, the transaction volume totaled $1.57 billion and over 3.58 million square feet.

The largest single property transaction was Healthcare Realty Trust’s acquisition of the Saddleback Valley Medical Center in Laguna Hills, CA. HRT acquired the 135,904-square-foot property for $84 million.

The largest portfolio transaction was the Welltower/Wafra portfolio consisting of 24 properties and totaling $550 million. The second largest transaction was ...

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

Capital Medical Center is a community-based healthcare system that serves patients throughout South Sound and provides care in more than 20 specialties and subspecialties. MultiCare Health System of Tacoma announced it will acquire ownership interest in Capital Medical Center. The hospital will become part of the MultiCare network that includes nine hospitals, one children’s hospital and a network of primary, specialty and urgent care clinics.

Provider Snapshot:

• Headquarters: Olympia, WA

• Number of Beds: 107

• Industry: Hospitals/Inpatient Services

• Services: Comprehensive Medical Services

• Acquired By: MultiCare Health Syst...

Source Article: Forbes

Commentary by: Chris Gordon, Senior Managing Director, Global Healthcare Services

How are hospitals and medical centers rethinking their office needs and workspaces?

With the recent surges and fluctuations in patient care, access to clinical space is crucial. According to a recent article in Forbes, approximately one-third of academic medical centers are dedicated to non-clinical workspace. The pandemic has presented health systems an opportunity to reevaluate their spaces and create more productive and efficient floorplans.

To take a closer look, the following steps are recommended:

1. 1. Measure the Current State; utilization studies show who uses space and how often,

   2. Rethink Wo...

Join us in congratulating Newmark Healthcare’s executive leader Todd Perman, CCIM and senior team members Chris Gordon, Jay Miele, and John Nero for being recognized as GlobeSt’s 2020 Healthcare Real Estate Influencers! GlobeSt recognizes top professionals who have made a significant impact to the healthcare real estate industry through their success, innovation, and best practices. Congrats Team!

Commentary by: Jay Miele, Senior Managing Director, Global Healthcare Services

The pandemic is driving healthcare providers, owners and developers to reimagine existing and future healthcare spaces. Implementing safety precautions, such as distanced furniture and touchless access points, remain a top priority for current healthcare spaces. Future developments are rethinking air quality requirements and space designs that easily adjust for health risk events. The need for outpatient facilities is also stronger than ever, as they offer patients a variety of services alternative to a traditional hospital setting. In the months ahead, expect healthcare providers, owners and developers to continu...