The sales volume of MOBs, while still down by 10% at mid year has increased over the past 6 months. The West Region with $665 million was the most active market. The Southeast Region with 23 transactions totaled $280 million. Again, there is no data recorded for the Atlanta market.
After steadily climbing for the past 2 ½ years Capitalization (CAP) rates, an indicator of value based on Net Operating Income (NOI) and perceived risk at 8.2% has finally leveled off from a low of 6.5% recorded the winter of 2007/2008. A lower CAP rate indicates a higher value based on the same NOI. An interesting trend is that CAP rates for MOBs, which have historical remained equal or higher than office properties are now 60 basis points lower.
There are several other interesting trends however in summary medical office buildings are entering a new opportunistic cycle for real estate investors.
For a complete report of supporting data and/or request a market study for areas not yet reported on this blog please give us a call or email Richard Smith. We can also provide complete full market research studies including demographics, available spaces, lease rates, operating expenses, investment analysis, sales comparables and tenant rosters of medical office buildings in Atlanta across the Southeast Region. We work with health care professionals evaluating real estate options. Good health in 2010.
