MOB Report Mid Year 2010 Investments Trends

The Mid Year 2010 REAL Capital Report on Medical Office Buildings indicates positive changes for investors of healthcare real estate. The national average price per square foot for Medical Office Buildings (MOB) has risen by $13.00 per square foot to over $224.40 per square foot over year end 2009. However, prices are still well below the historical highs of over $275.00 per square foot in 2007. As comparison the Southeast average is $177.00 per square foot with highest being $323.00 per square foot in the West Region. There is no data recorded for the Atlanta MOB market.

MOB Report Year End 2009 Investment Trends

The Fourth Quarter 2009 REAL Capital Report on Medical Office Buildings reveals some interesting trends and backs up what has been reported for the past year.  For 2009 verses 2008 Medical Office Building (MOB) sales volume declined by 63%.  The average price per square foot was down by -6% however by some measurements up by 9%.  This compares to traditional office properties which were down by -71% in sales volume and down by a massive -26% in average prices per square foot.  The percent asking price to achieved price was approximately 89% for both type properties.

Health Care Property Loans – MOB Financing

Medical practices evaluating the purchase of a medical office building will have many finance options available in the market.  While this is a broad category, finance options/potential structures will vary widely based on such factors as loan amount, owner occupied or investment, strength of owner, cash flow, liquidity, etc. In addition, the type of medical office building dictates options. A commercial condo loan will differ from a single tenant and/or multi-tenant medical office building.