Feature Story: Coming out of the malaise

Some difficulties could linger, but CBRE webinar panelists say a better year lies ahead

By John B. Mugford

The CBRE Healthcare Capital Markets webcast featured  Stefan Weiss, senior managing economist with CBRE Econometric Advisors, along with several other panelists. (HREI photo)

The medical outpatient building (MOB) sector has seen a slowdown in development and sales for several reasons during the past couple of years.

Today, however, while not necessarily expecting an immediate return to the historically strong years leading up to the COVID-19 pandemic, a growing number of industry experts predict 2025 will likely be a strong year – better than 2024.

The reasons for this optimism include, among others:
■ continued strong interest in MOBs from a wide range of investors and funds, both domestic and foreign;
■ slowly falling interest rates;
■ a slowdown in inflation;
■ strong interest from lenders, including alternative types of lenders, looking to provide financing;
■ an easing of the labor shortages seen in recent years, and, of course:
■ the enduring demographic trend of an aging population, which will continue to drive demand for healthcare services in both inpatient and outpatient facilities long into the future.

These reasons for expecting a strong 2025 were outlined during a webinar presented last Thursday, Jan. 16, by the U.S. Healthcare Capital Markets team with Dallas-based CBRE Group Inc. (NYSE: CBRE).

Chris Bodnar, vice chair of investment properties with the healthcare team, hosted the webinar. He was joined by Brannan Knott, executive VP, investment properties; Zack Holderman, senior VP, debt & structured finance; Cole Reethof, VP with the healthcare capital markets team; and, Stefan Weiss, senior managing economist with CBRE Econometric Advisors.

Also taking part were two executives with New York-based BlackBirch Capital – CEO Dan McNulty and Managing Director Marc Amico – an advisory firm that works with CBRE to provide clients with strategic advice on capital raises and transactions.

Looking ahead to the remainder of 2025, Mr. Bodnar noted that

The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE

Existing Users Log In