Feature Story: What’s your MOB worth?

Revista panel explores valuations and pricing in an uncertain market

By John B. Mugford

The Revista valuations panel included (from left to right): moderator Lorie Damon of Cushman & Wakefield, Dan Klein of DOC, Victor McConnell of VMG, Chris Lashmet of Berkadia and Steve Bolen of LaSalle Investment Management. (HREI photo)

What’s your medical office building (MOB) worth?

The short answer is: Less than it was a few months ago.

That’s according to a group of experienced healthcare real estate (HRE) professionals who gathered for a panel discussion during the recent Revista Medical Real Estate Investment Forum (MREIF) in Bonita Springs.

However, the panel concluded that there could be a slight increase in transactions activity during the second half of this year as prices reset and buyers and sellers adjust their expectations.

The panel, titled “Today’s Medical Real Estate Valuation and Pricing Trends,” took a deep dive into current pricing and valuation trends. It was moderated by Lorie Damon, managing director with the Healthcare Advisory Practice of Chicago-based Cushman & Wakefield Inc. (NYSE: CWK).

The panelists were:
■ Steve Bolen, managing director with Chicago-based LaSalle Investment Management (LIM) and head of the private equity investment firm’s healthcare real estate practice;
■ Dan Klein, senior VP and deputy chief investment officer with Milwaukee-based Physicians Realty Trust (NYSE: DOC), a publicly traded real estate investment trust (REIT) focused on acquiring and owning medical office buildings (MOBs);
■ Chris Lashmet, managing director of the relatively new medical office and life sciences real estate advisory and investment sales group at New York-based Berkadia; and
■ Victor McConnell, managing director of real estate services with Dallas-based VMG Health.

At the outset of the discussion, Ms. Damon laid out some data that, on the surface, made the MOB investment market look rather bleak.

She noted in her introduction that, with all of the turmoil taking place in the market in the latter half of 2022 and into 2023, MOB sales had fallen significantly in recent months. Data from the RevistaMed database indicates that MOB sales volume was

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