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Thought Leaders: CBRE 2018 Healthcare Real Estate Investor & Developer Survey Results


CBRE’s U.S. Healthcare Capital Markets Group is pleased to present the findings of our 2018 Investor & Developer Survey. In developing the survey, our main objective was to identify trends in the healthcare real estate industry and to share this information with our clients to help them better understand the state of the market.

The survey provides:

  • A snapshot of investor and developer return requirements
  • Investment criteria
  • Most importantly, their perception of what lies ahead

This primary research produced qualitative industry data that provides a snapshot of investor and developer return requirements, investment criteria, and – most importantly – the market shifts and progressions these key influencers anticipate in the near future. Some of the more interesting findings resulting from this year’s survey include:

INVESTMENT CRITERIA: When asked about the amount of equity their firm has allocated to healthcare real estate investment and development activity in 2018, the total for all the firms combined equated to nearly $11.2 billion, which is approximately 25% lower than the estimated $14.9 billion that was reported in our 2017 survey results. However, while the amount reported in the survey results is lower than previous years, it is important to note that only 15% of the unique firms surveyed consider themselves healthcare REITs or institutional healthcare investors. In addition, the amount of equity estimated in 2018 is still higher than in prior years 2011-2014 and is approximately 110% of the total market transaction volume that traded in 2017.

RETURN REQUIREMENTS: Value for core product, namely Class”#.’ on-campus medical office buildings, continues to be high with 44% of the survey respondents reporting that cap rates are projected below 5.50%. There also continues to be a spread in cap rates between core Class”#.’ and Class “B” medical office product; however, the survey results show that the cap rate spread between Class ”#.’ on-campus and off-campus product types narrowed significantly between the 2017 to 2018 survey. We believe this reflects the growing supply of high-quality medical office buildings that are strategically positioned away from campus by health systems. Many of these assets are positioned in affluent, high-growth, suburban secondary and tertiary markets as healthcare providers continue to establish themselves closer to patients’ residences and seek to gain market share. Half of respondents (50%) expect cap rates for Class “B” off-campus product to be in the range of 6.00% – 6.99% in 2017.

Other highlights include survey results regarding

  • planned investment activity
  • supply & demand
  • market fundamental
  • healthcare reform
  • and more

To download the complete report, please click here.

For more information, please contact:


Vice Chairman
Investment Properties
+1 303 628 1711

Vice Chairman
Investment Properties
+1 404 504 5965

Senior Director
Investment Properties
+1 303 628 1745

Senior Director
Investment Properties
+1 404 536 5054

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