Opinions vary, but most agree that debt costs are up and there’s a gap in bid-ask pricing
By John B. Mugford
This year will probably set a record for MOB sales thanks to the roughly $11 billion HR-HTA merger. But that mega deal might mask a possible slowdown in overall deal volume during the second half of 2022. (Illustration courtesy of HR)
Sure, medical office building (MOB) sales have been on a tear in the 12 months leading up to the end of the second quarter (Q2) of this year, totaling an all-time high of $21.2 billion during that time.
And, by the time 2022 comes to a close, the MOB sales volume for the year is likely to top the all-time, single-year record, largely fueled by this year’s merger of two of the sector’s largest publicly traded real estate investment trusts (REITs): Healthcare Trust of America (HTA) into a newly formed Nashville, Tenn.-based Healthcare Realty Trust Inc. (NYSE: HR).
That merger includes the sales of MOBs totaling about $11 billion – the final total has yet to be tallied by healthcare real estate (HRE) data firm Revista. When coupled with the first-half 2022 volume of $8.2 billion, those sales alone would top $19 billion. The was set in 2021 with a volume of $18.4 billion, according to Revista.
However, although sales have been strong and the HR-HTA merger will indeed propel 2022 to new heights, there is currently an underlying feeling among HRE professionals that
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