Special Focus: MOB pros still optimistic, survey says

THEY EXPECT MORE ACQUISITIONS, WITH STABLE OCCUPANCIES AND NET INCOMES

By John Mugford

Even as the economy was tanking in November 2008, a group of medical office building (MOB) owners, investors and developers remained optimistic about their industry for 2009, according to a survey conducted by New York-based Healthcare Real Estate Capital LLC (HRE Cap).

In fact, the 13 national, active companies that responded to HRE Cap’s electronic survey in November believe that 2009 will turn out to be a good year for their businesses.

They foresee their own acquisition volume for MOBs increasing substantially, occupancy levels remaining stable, and net operating income (NOI) growing at a steady pace that will be in line with recent years.

The respondents represented companies with a total of about $5.68 billion worth of MOB product. The average respondent is a company with a portfolio worth about $436 million, ranging from one firm with a $1.5 billion portfolio to a firm with about $50 million worth of MOBs.

E. Hunter Beebe, a principal with HRE Cap, says he wanted the survey to be narrow in focus, concentrating on operations and acquisitions for the coming year. HRE Cap provides a variety of advisory services for hospitals and health systems, MOB owners and developers, real estate investment trusts (REITs), and other firms involved in healthcare real estate.

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