Panelists at Colliers healthcare conference share their strategies in current market
By John B. Mugford
The investment panel at the recent Colliers 2023 National Healthcare Conference in Washington, D.C., comprised, from left to right: Tyler Rhoades (moderator), Mervyn Alphonso, David Liu, John Winer and Jim McMahon. (HREI photo)
It was just a couple of years ago that the medical office building (MOB) sales sector was in the midst of a decades-long hot streak. Debt was flowing for almost anything healthcare-related. Portfolio sales were all the rage. Value-add deals were popular. Investors had to jump on offerings quickly or lose out.
How things have changed in 2023, with interest rates rising, financing getting significantly more expensive and harder to come by, and smaller, one-off deals being preferred over larger portfolios by both investors and lenders.
When asked what the catalyst will be to steady the healthcare real estate (HRE) market in 2024, Jonathan L. “John” Winer, president and chief investment officer of White Plains, N.Y.-based Rethink Healthcare Real Estate, said, “anybody who ventures to make predictions does so at their own risk. But the conventional wisdom is that at some point, during next year, the (U.S.) Federal Reserve will start to moderate their monetary tightening policy and I think, when the market sees that, it’s going to be a sign that it’s a more favorable environment to invest in again. That could be the stabilizing factor.”
But then again, Mr. Winer noted,
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