Fourth-Quarter 2021 Sees Strong Medical Office Building Sales Activity with Close of 399 Properties Totaling $4.8B

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


All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

Download Our

Sign Up for Our Newsletter