MEDICAL OFFICE BUILDING PRICES KEEP RISING AND CAP RATES KEEP FALLING
By John Mugford
Statistics concerning nationwide sales of medical office buildings (MOBs) continue to tell a compelling and, for that matter, somewhat incredible story.
In a nutshell, the story goes like this: More and more investors are looking to acquire MOBs, finding available product is getting harder and harder, prices are going higher and higher, and the average capitalization (cap) rate continues to go lower and lower (at least for now).
All of this is the result of, as noted above, an ever-expanding pool of potential MOB buyers entering the marketplace, which continues to be flooded with the likes of real estate firms, real estate investment trusts (REITs), high-net worth individuals, tenants-in-common (TIC) ownership groups and institutional investors such as pension funds.
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