Feature Story: Providers still looking to expand despite hard times
Hospital and health system executives on InterFace conference panel discuss strategies, concerns By John B. Mugford Just how bad are the financial difficulties currently facing the nation’s hospitals and health systems? As one health system real estate executive put it during the InterFace Healthcare Real Estate (HRE) Conference on Sept. 7 in Dallas, “Okay, interest […]
Feature Story: When will MOB sales bounce back?
Probably not before the elections of 2024, according to an InterFace panel By John B. Mugford On the surface, the current state of the medical office building (MOB) investment market is about as slow as it’s been for years, maybe decades. “The first half of the year volume was down … anywhere from 66 to […]
Feature Story: Will the ‘financing cliff’ affect HRE?
All asset classes will see distress, but healthcare probably won’t see much By John B. Mugford Nearly $72 billion in U.S. commercial real estate (CRE) was considered “distressed” as of the end of the second quarter (Q2), an increase of 15 percent versus Q1, and another $162 billion of properties were considered to be in […]
Feature Story: MOB rental rate growth plateaus, but remains strong
Revista presenters break down market statistics, including a look at MOB development By John B. Mugford Editor’s note: Last week, HREI reported on Revista’s Second Quarter (Q2) Subscriber Webcast, primarily focusing on data that was shared about the national investment market. This week, we take a closer look at individual geographic markets in terms of […]
Feature Story: First-half MOB sales volume drops drastically
Revista provides Q2 market update; lender says cap rates are now in the 6-6.5% range By John B. Mugford It goes without saying that nearly everyone involved in the medical office building (MOB) sector suspected that the sales volume is off to quite a slow start in 2023. Even so, the depths to which the […]
Feature Story: Systems still approving projects, but with more scrutiny
Executives at InterFace discuss the challenges of preserving capital while still growing By John B. Mugford The moderator of a recent panel session exploring the outlook for hospitals and health systems, including their plans for their real estate, cut right to chase. The first question that Gordon Soderlund, executive VP of strategic relationships with Charlotte-based […]
Feature Story: Developers need to ‘add value’
InterFace Carolinas panelists say higher costs have changed the game By John B. Mugford According to statistics, healthcare real estate (HRE) development is on the rise throughout the country. As noted in the “What’s Trending?” feature at the bottom of this edition of the HREI™ weekly e-newsletter, a recent report from the U.S. Healthcare & […]
Feature Story: Are MOB sales steadying, rising?
It’s a tough market, but InterFace Carolinas conference panelists are optimistic By John B. Mugford Despite the fact that the national medical office building (MOB) sales volume in the first quarter (Q1) marked the lowest quarterly volume in a decade or so, there are signs – albeit anecdotal – that momentum is picking up. “I […]
Feature Story: HR soars on list of largest owners of medical real estate
But Kaiser Permanente is still No. 1 by far, according to Revista’s latest top 50 report By John B. Mugford It should come as no surprise that the entity that grew its medical real estate portfolio the most in 2022 was Nashville, Tenn.-based Healthcare Realty Trust Inc. (NYSE: HR), a publicly traded real estate investment […]
Feature Story: Mild recession could be looming by year-end
Economist Sam Chandan notes that Fed is likely putting an end to interest rate increases By John B. Mugford As you probably know, President Joe Biden and House Speaker Kevin McCarthy reached a tentative agreement over the Memorial Day weekend to raise the national debt ceiling, and Congress is scheduled to take up the plan […]
Feature Story: Same underwriting, new ‘math’
Inflation, interest rates and the bid-ask gap have slowed HRE lending By John B. Mugford If healthcare real estate (HRE) loan volume has declined in recent months, lenders say, don’t blame them. The real culprits, they say, are rising inflation and higher interest rates, as well as the gap between seller expectations and what buyers […]
Feature Story: HRE CEOs have plenty to be concerned about
But good fundamentals and innovation will bolster the sector, BOMA panelists say By John B. Mugford From bank failures and uncertain capital markets to “broken” regulatory policies and healthcare employee burnout, today’s healthcare real estate (HRE) CEOs face many thorny issues. But they also remain confident about the long-term prospects of their business. That was […]
Feature Story: Are providers suffering from whiplash?
BOMA panel discusses how they are coping with sudden changes By John B. Mugford As health systems struggle financially, with costs of providing care rising and government reimbursements not nearly keeping up, their operating margins continue to decline. According to a report by Chicago-based Kaufman Hall, a healthcare and education consulting and research firm, more […]
Feature Story: Amid market uncertainty, investors share some strategies
BOMA panelists discuss acquisitions, dispositions and joint ventures By John B. Mugford CHICAGO – As we move further into 2023, there are so many questions about the current slowdown in the healthcare real estate (HRE) acquisitions market, with a heavy emphasis on medical office buildings (MOBs) and where things are headed for the remainder of […]
Feature Story: Q1 MOB sales plunge to near historic low of $1.4B
But occupancy rates in the top metros have hit a new high, Revista says By John B. Mugford Medical office building (MOB) sales in the first three months of the year dropped to the lowest first quarter volume for any year since 2014. But such a statistic does not necessarily reflect the overall strength of […]