Productions: No MOB turnaround yet

Q1 SALES SANK, BUT SOME SAY A REBOUND IS NEAR

By John Mugford

As the recession took hold in 2008 and slowed the healthcare real estate sector, some industry veterans speculated that one aspect of the business – the sales of medical office buildings (MOBs) – would begin showing signs of a comeback in the early part 2009.

But in looking at the latest statistics released by New York-based Real Capital Analytics (RCA), which tracks nationwide commercial real estate transactions, that did not happen. Not in the first quarter (Q1) at least.

RCA’s statistics show a total nationwide MOB sales volume of about $180 million in Q1 2009, a significant drop of about 68.4 percent from the previous quarter, Q4 2008.

The first quarter sales volume was about 84.3 percent less than the first quarter of a year ago, Q1 2008. (Note: RCA only tracks sales of $5 million or more.)

Industry veterans considered the last half of 2008 – Q3 and Q4 – to be a reflection of an industry slowdown resulting from the recession and the tightening of the capital markets.

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