Recently, the number of new construction projects has been low for the medical real estate industry. However, certain property types have been going against the current and have seen higher activity than usual. Two that stand out are behavioral health hospitals and rehab hospitals. The chart below shows the amount of square footage that started construction over the past 9 years on a trailing 12-month basis (TTM).  The past two years have been elevated, with a total oscillating between 2.5 and 3.5 million square feet. Looking at the two property types separately, rehab hospitals peaked at ..read more

Columbus, Ohio is the 21st largest market RevistaMed tracks in terms of outpatient or medical office square feet.  Columbus has been in growth mode for the past few years from a healthcare real estate perspective.  OSU Wexler has embarked on a $3B plus plan to build a new 1.9 million square foot inpatient tower as well as an ambitious outpatient care center in Powell, OH.  Ohio Health has also been growing and recently delivered a 200,000+ SF addition to its Pickerington Hospital.  Ohio health has also been active in delivering several new freestanding ERs in various commun ..read more

In partnership with Health Care Real Estate Insights (HREI), Revista has published their annual outpatient development report. The 2024 report covers all medical outpatient real estate developments that either broke ground or completed in the previous year. The total for 2023 came in at 31.1 million square feet. The construction data in this report is obtained from a combination of Revista research, and our annual survey of the largest real estate developers in the medical sector. The top developer in 2023 was Hammes Partners, with 16 outpatient developments totaling 1.3 million square feet. T ..read more

The Revistamed Metro Rankings page provides an easy way to quickly measure the top 125 metro areas on key medical office metrics.  The columns are sortable and users can also download the data to xls where even more columns will populate.  So we sorted the table by Occupancy TTM and guess which metro area has the highest occupancy as of 4Q23?  – Well if you guessed Lancaster, PA you were correct! So lets look quickly at the Lancaster PA metro area.  Revista counts almost 2.5 million square feet (SF) in the market, making it the 97th largest market Revistamed tracks.  L ..read more

Revista’s Entity Search is a large database of over 10,000 healthcare real estate owners, developers, providers and health systems. Search by location, number of properties or entity type to retrieve a list of companies and contacts. Take a deep dive in the entity reports to see recent activity and footprint for each company. From business development to competitive intelligence, stay in the know about industry stakeholders and keep your business ahead of the curve. Contact Us for more information! The post Product Feature – Entity Search appeared first on Revista ..read more

The average cap rate for medical office building (MOB) transactions moved up to 7% in the last quarter of 2023. This is up 90 basis points from one year prior. A pricing gap between on and off campus MOBs remains, with on campus coming in 30 basis points lower at 6.7%. Despite the strong underlying fundamentals, investor demand is being limited by stringent capital conditions. Pricing has become less competitive on a price per square foot basis as well, down to $346 a square foot. If you’re interested in understanding how the different industry participants view the current environment, make ..read more

RevistaMed recently held its 4th Quarter Subscriber Webcast.  During the presentation we discussed the top 10 demand markets (out of the largest 125).  We ranked the markets top to bottom based on trailing twelve month (TTM) net absorption (defined as TTM absorption minus TTM completions).  Topping the list was Phoenix as of 4Q23.  It had TTM net absorption of 590,912 square feet.  The Phoenix MOB market has seen tremendous growth since the middle of 2021.  Its occupancy rate has risen from 85.4% to 90.1% since 2Q21.  Los Angeles has also seen growth during t ..read more

Revista held its 4th quarter, 2023 subscriber webinar recently. During the webinar, it was reported that occupancy rates were continuing to rise for Medical office properties in the top 50 metros. Markets located in the south generally reported stronger net absorption and rent growth. Transaction activity continued to be low relative to previous years and construction volumes, while steady, were showing signs of declining in future quarters. For a limited time, access the abridged slides to this webinar through this link: 4Q23 RevistaMed Subscriber Webinar. The post The Revista 4Q23 Subscribe ..read more

For all of 2023 investors have been waiting for more clarity on the monetary policy path. The FOMC meeting last week provided what many have been waiting for. The median projection for the federal funds rate is now 4.6 for the end of 2024. This leaves room for three 25 basis point cuts throughout the year. While not shown in the graph below, the full range of forecasts for 2024 is 3.9 – 5.4. This indicates that all the meeting participants are predicting no rate hikes in 2024, which is a first for this year. Of course, there is always a possibility that an unexpected event pushes us off track ..read more

For healthcare tenants in costal markets such as Los Angeles, San Jose or San Francisco, it is understood that higher rent levels come with the territory.  Historically hard to build, high demand markets on the coasts have allowed rent levels to build over the years.  In fact, the 2 most expensive rent markets (of the top 50 metros) for MOBs in 3Q23 are San Jose ($45.81 avg NNN rent) and San Francisco ($41.00 avg NNN rent).  But while markets on the coasts may  boast higher rents, it is other markets that are seeing faster rent growth in 3Q23.  Buffalo, NY leads the pa ..read more