Healthcare Capital Markets Perspective
- The major reason was HTA’s $2.2 billion acquisition of the Duke Realty healthcare portfolio in June, leaving the balance of first half acquisitions at $3.2 billion, consistent with first half volume in 2015 and 2016 – years with record overall sales.
- Record MOB sales in the first half of nearly $5.5 billion rivaled total volume in 2012 through 2014.
- With additional major transactions such as the $612.5 million Meadows & Ohly portfolio in Atlanta and more in the pipeline, it’s possible that 2017 will shatter the 2015 record of $9 billion.
- Regardless of the continued influx of fresh capital into medical office, JLL believes that the marketplace has been responsive in creating new supply, whether from developer-built portfolios like Duke Realty and Meadows & Ohly, or providers or investors.
- New capital from investors seeking yield in a heady overall real estate investment environment puts a spotlight on the unique and enduring qualities of medical office, further solidifying the segment’s status as an institutional-quality asset class.
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