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Feature Story: How low can MOB cap rates go?

HRE professionals discuss the current pricing frenzy at Revista conference

By John B. Muford

PALM BEACH GARDENS, Fla. – In recent years, as the competition to acquire medical office buildings (MOBs) has heated up tremendously, capitalization (cap) rates, or the expected first-year returns, have dropped steadily.

This cap-rate compression, if you will, has left many traditional MOB investors frustrated and questioning how much lower cap rates can go.

It looks like 2019 was a year in which cap rates continued to drop, otherwise meaning prices continued to soar.

“One of the things that was most surprising for us in 2019 was

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