While keeping a wary eye on the coronavirus, InterFace HRE West panelists discuss strategy in a highly competitive, low-cap rate environment
By John B. Mugford
The InterFace HRE West investment panel featured (from left to right): moderator Travis Ives of Cushman & Wakefield, Garth Hogan of NKF, Jon Sajeski of Carter Validus Mission Critical REIT II, Andrew Saba of Stockdale Capital Partners and Samir Patel of IRA Capital. (HREI photo)
Some believe that the potential impact of the coronavirus has been overblown by the news media. Yet any prudent business person is still watching the situation closely and trying to assess the potential effects on their own market if the outbreak becomes a pandemic.
For healthcare providers, their services would be in high demand, but their business could be substantially disrupted. Commercial real estate fundamentals are strong, but hotels and retail are likely to be affected in the short-term. Most believe that infections will peak this month. But the broader economy could be affected if there is a longer-term disruption. Capital markets and leasing might slow in the short term, but the Federal Reserve’s 50-basis point federal funds rate cut target range of 1.0% to 1.25% will certainly help.
Although healthcare real estate (HRE) professionals are keeping a wary eye on the coronavirus situation, it appears to be business as usual for most of them. But that’s not to say business wasn’t already challenging in the HRE space, especially on the investment side.
Coronavirus aside, what’s a medical office building (MOB) investor supposed to do to find product that can provide at least some yield in today’s highly competitive, supply-constrained market?
The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE
