Special Report: Sector remains solid, BOMA panel says

BUT THE CAPITAL ENVIRONMENT HAS CHANGED, EVEN FOR MEDICAL REAL ESTATE

Al Pontius of Marcus & Millichap shared highlights from the firm’s research
during the capital markets panel at the 2009 BOMA MOB conference.
Photo courtesy of BOMA International

By Murray W. Wolf

Although the healthcare real estate sector has not been spared the pain of the recession, it remains a “favored child” in the commercial property business and most players remain bullish about its long-term prospects.

That was the general consensus during a panel discussion June 26 during the 2009 Medical Office Buildings (MOBs) and Healthcare Facilities Conference. The event, presented by BOMA International, included a series of presentations, panel discussions and other events held at the Philadelphia Marriott Downtown from June 24-26.

Intended to update a similar capital markets panel at the 2008 BOMA MOB conference in Denver, the session was titled “Second Opinions: The Health of the Capital Markets Redux.”

The discussion was moderated by Jonathan L. “John” Winer, executive VP with Seavest Inc. The panelists were:

• Alan L. “Al” Pontius, senior VP/managing director, National Office and Industrial Properties Group, Marcus & Millichap;
• Malcolm S. Sina, president, DASCO Cos.;
• James M. “Jim” Moloney, managing director and head of real estate, Cain Brothers & Co. LLC; and
• Jeffrey H. “Jeff” Cooper, executive managing director, Savills LLC.

Mr. Pontius provided context for the discussion with a series of slides providing data on the U.S. economy, healthcare and the MOB market, drawn from the recent work of Marcus & Millichap’s research team.