Q2 2024
National MOB Real Estate Investor Update
MOB Cap Rates Fall for First Time in Two Years
Key Takeaways from the Q2 2024 Report:
• Medical outpatient building (MOB) investment volume rose by 60% quarter-over-quarter in Q2 to $2.5 billion, bringing the trailing-four-quarter total to $7.7 billion.
• MOB sale prices averaged $291 per sq. ft., up by $3 from Q1 and 49% more than the average price of traditional office buildings.
• The average MOB cap rate fell by 10 basis points (bps) quarter-over-quarter to 6.9%, the first quarterly decline since Q2 2022.
• Washington, D.C. had the most trailing-four-quarter MOB investment volume in Q2 with $381 million, followed by Los Angeles with $352 million and Phoenix with $345 million.
• Average MOB triple-net asking rents increased by 0.5% quarter-over-quarter and 1.4% yea-rover-year to $24.86 per sq. ft.
• Net absorption of 2.2 million sq. ft. in Q2 brought the trailing-four-quarter total to 4.8 million sq. ft. and was a thirtyfold increase from Q1.
• Houston was the top market for trailing-four-quarter MOB absorption with 1.4 million sq. ft., followed by Chicago with 962,000 sq. ft. and Northern New Jersey with 788,000 sq. ft.
• The 60 U.S. MOB markets tracked by CBRE had a combined 11.5 million sq. ft. of inventory under construction in Q2, up by 2.1% from Q1.
For more information, please contact:
CBRE U.S. Healthcare Capital Markets & BlackBirch Capital Investment Banking
Chris Bodnar
CBRE
Vice Chairman
Brannan Knott
CBRE
Executive Vice President
Zack Holderman
CBRE
Senior Vice President
Dan McNulty
BlackBirch Capital
CEO
Marc Amico
BlackBirch Capital
Managing Director
Amanda Doster
BlackBirch Capital
Vice President
Cole Reethof
CBRE
Vice President
Trent Jemmett
CBRE
Senior Director
Jesse Greshin
CBRE
Vice President
Corra John
CBRE
Associate Director
Chad Stark
CBRE
Associate Director
Jaime Jones-Vantsa
CBRE
Investment Sales Manager
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
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:
Jody King
Ina Sargen
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
Ken Brown
PRIVATE EQUITY – HEALTHCARE
Kevin McLennan
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