Q1 2023
National Healthcare
& Life Sciences
Real Estate Investor Update
Download the Real Estate Investor Update
Key Takeaways from the Q1 2023 Issue:
Medical Office
• MOB sales totaled $1.7 billion in Q1 2023, a 74% decrease from $6.4 billion of transaction volume in Q1 2022, the lowest first quarter for medical office sales in the last nine years. The decline in overall transaction volume was concentrated in portfolio activity, portfolio transaction volume dropped $1.0B, while individual transaction volume dropped $700M. Market fundamentals remain stable as occupancy, retention rates, and market rent growth continue to point to the resiliency of the medical office sector.
Life Sciences
• The lab/R&D vacancy rate increased by 132 basis points (bps) quarter-over-quarter and 170 bps year-over-year to 6.7% as the record post-pandemic demand appears to have subsided. However, the vacancy rate remains well below years past with demand for life science space expected to remain robust.
• Venture capital funding to the life science industry fell to $3.6 billion in Q1 2023, below the previous quarter but on par with pre-pandemic 2019 levels. While venture capital investors are becoming more selective, sectors such as novel research continue to draw record financial backing.
Debt
• Despite notable failures, banks remained the top lending group in Q1 2023 with 41.4% share of non-agency loan volume, down from 58% in Q4 2022. About one-third of these loans were for construction projects while the remainder was split between acquisition loans and refinancing. Most local and regional banks continue to include deposit requests in their quote sheets in response to collapse of several banks over the last few months.
For more information, please contact:
CBRE Healthcare & Life Sciences Capital Markets
Chris Bodnar
Vice Chairman & Managing Director
+1 720 635 2653
chris.bodnar@cbre.com
Lee Asher
Vice Chairman
+1 404 504 5965
lee.asher@cbre.com
Zack Holderman
Senior Vice President
+1 858 337 9412
zack.holderman@cbre.com
Jordan Selbiger
First Vice President
+1 404 923 1259
jordan.selbiger@cbre.com
Trent Jemmett
Senior Director
+1 858 646 4740
trent.jemmett@cbre.com
Cole Reethof
Director
+1 404 504 7864
cole.reethof@cbre.com
Josiah Gunter
Associate Director
+1 404 504 7936
josiah.gunter@cbre.com
Jesse Greshin
Vice President
+1 860 808 4810
jesse.greshin@cbre.com
BlackBirch Capital – Investment Banking
Dan McNulty
CEO
+1 646 634 8694 dan.mcnulty@blackbirchcapital.io
Marc Amico
Managing Director
+1 917 297 1087 marc.amico@blackbirchcapital.io
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