Revista data indicates that Q1 sales were $2.5 billion, with the average cap rate of 6.3%
By John B. Mugford
Although medical office building (MOB) sales are expected to take a hit in the second and third quarters (Q2 and Q3) of this year, they were quite healthy in Q1 as demand for the product type remained strong right up until the onset of the COVID-19 pandemic.
According to real estate research firm Real Capital Analytics (RCA), MOB sales in Q1 totaled $3.01 billion, only the ninth time since 2001 – when RCA first began compiling such data – that the quarterly volume topped $3 billion.
Another major healthcare real estate (HRE) data firm, Arnold, Md.-based Revista, determined that MOB sales were $2.5 billion in Q1, down from very strong Q4 2019 in which the volume was $4.3 billion. (It should be noted that the MOB sales figures and statistics compiled by RCA and Revista can differ, as the two entities use different methods and sources for compiling data.)
RCA’s data, which includes all MOB transactions topping $5 million, also indicates that the average cap rate for deals during Q1 was
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