Product Focus: Second-half slowdown


By John Mugford

The year 2008 did not seem like just one year, it was like two or three years depending on how you break the months up.”

When Kevin O’Neil, the senior managing director of healthcare real estate for Dallas-based Trammell Crow Co., said those words at the annual meeting of the Editorial Advisory Board of Healthcare Real Estate Insights™, he was not necessarily speaking specifically about sales of medical office buildings (MOBs). He was talking about healthcare real estate in general. Even so, his words did indeed sum up the MOB acquisition market in 2008, which, on paper, reveals two very different halves.

The first half of the year saw robust volume, with nationwide MOB sales totaling about $2.4 billion, according to statistics from New York-based Real Capital Analytics (RCA) Inc., a firm that tracks sales of commercial real estate properties throughout the country and shares some of its MOB data with HREI.

Even though the economy had started showing signs of slowing during the first half of the year, MOB sales during that time compared favorably with past years. The total MOB sales volume for the first half of 2007 was $2.64 billion, and for the first half of 2006 total sales volume was $2.1 billion.

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