Quarter sees lowest sales volume in nine quarters, but market remains strong
By John B. Mugford
For the first time in nine quarters, medical office building (MOB) sales failed to top $2 billion, even though the third quarter (Q3) 2016 was still quite strong from a historical perspective.
With sales for Q3 totaling $1.7 billion, volume was down 23 percent from Q2 (when sales totaled $2.2 billion) and down 26 percent from a year earlier, Q3 2015 ($2.3 billion), according to commercial real estate research firm Real Capital Analytics (RCA) Inc. RCA’s stats are for MOB sales topping $5 million.
Despite the drop off, a number of professionals in the sector say the lower Q3 2016 totals are nothing to be alarmed about. In fact, such totals could actually be expected, they say, after such a bull run of strong sales in recent years.
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