Figures | Medical Outpatient Buildings | Q1 2024
MOB Investment Activity Falls in Q1;
Rental Rates Continue to Climb
CBRE RESEARCH | MAY 2024
⇩ 1.6 B
Sales Volume
⇧ 7.0%
Average Cap Rate
⇩ -0.1 MSF
Net Absorption
⇧ 9.7%
Vacancy Rate
Note: Investment volume referenced in this report is compiled using the MSCI transactional database and deals submitted by CBRE Healthcare Capital Markets and CBRE Healthcare Practice Advisory Group.
Arrows indicate change from previous quarter.
Executive Summary
• Medical outpatient building (MOB) investment volume fell by 21% quarter-over-quarter in Q1 2024 to $1.6 billion, bringing the trailing-four-quarter total to $7.0 billion.
• MOBs sold for an average of $288 per sq. ft. in Q1, up by $1 from Q4 and the first increase in the past six quarters.
• Average MOB triple-net asking rent increased by 0.5% quarter-over-quarter and 1.3% year-over-year to $24.70 per sq. ft.
• Negative net absorption of 104,000 sq. ft. in Q1 lowered the trailing-four-quarter total to 4.9 million sq. ft. and ended 14 consecutive quarters of positive net absorption.
• The 59 U.S. MOB markets tracked by CBRE had a combined 11.2 million sq. ft. of inventory under construction as of Q1.
For more information, please contact:
CBRE U.S. Healthcare Capital Markets
Chris Bodnar
Vice Chairman,
Head of Healthcare Advisory
Brannan Knott
Executive Vice President
Zack Holderman
Senior Vice President
Cole Reethof
Vice President
Trent Jemmett
Senior Director
Jesse Greshin
Vice President
Corra John
Associate Director
Jaime Jones-Vantsa
Investment Sales Manager
BlackBirch Capital Investment Banking
Dan McNulty
CEO
Marc Amico
Managing Director
Amanda Doster
Vice President
CBRE Healthcare
Global Workplace Solutions
Kevin Kraiss
Healthcare Sector – President
Dan Dolsen
Senior Managing Director
CBRE Healthcare
Appraisal
Daniel Lincoln
Executive Vice President
CBRE Healthcare
Consulting
Stevie Bander
Managing Director
CBRE Healthcare Practice Advisory Group
ARIZONA
Phoenix:
Phil Wurth
CALIFORNIA
San Diego:
Lars Eisenhauer
Dan Henry
Orange County:
John Scruggs
Los Angeles:
Angie Weber
Dana Nialis
Todd Doney
Rocky Binswanger
David Freitag
San Jose:
Thor Wiles
Paul Lyles
Stockton:
Brian Peterson
COLORADO
Denver:
Dann Burke
Stephani Gaskins
Anna Heiserman
Taylor Knabe
Ty Ritchie
Todd Papazian
FLORIDA
South Florida:
Carol Ellis-Cutler
Chris Dubberly
Deborah Fink
Tampa:
John Heald
GEORGIA
Adam Butler
Garrett Benefiel
HAWAII
Shawlea Aona
ILLINOIS
Gary Fazzio
Jon Springer
Andrew Kaplan
Tom Hollinden
NEW YORK
New York City:
Bill Hartman
NORTH CAROLINA
Raleigh:
Hastings Jones
OHIO
Columbus:
Molly Leach
Cleveland:
Daniel Mayer
OREGON
Brian Norton
Vickie Maletteri
PENNSYLVANIA
Philadelphia:
Katie Wenger
Jody King
Tom Stone
Harrisburg:
Jeremy Shyk
TENNESSEE
Chattanooga:
Natalie Hostetler
Nashville:
Alan Kirby
TEXAS
Houston:
Brandy Bellow Spinks
Scott Carter
Nelson Udstuen
Lane Kane
Angela Barber
Max Lozmack
San Antonio:
Parker LaBarge
David Ballard
Scott Herbold
Dallas:
Jordan Buis
Conrad McEachern
VIRGINIA / D.C.
John DiCamillo
Jack Evans
WASHINGTON
Paul Carr
Marcus Yamamoto
Katie Smith
BEHAVIORAL HEALTHCARE
Stuart Thomas
Chessa Pike
PRIVATE EQUITY – HEALTHCARE
Kevin McLennan
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