Medical Office Building Sales On Record Pace
Medical office building sales are on pace for a record-breaking year, according to the latest research from JLL.
JLL reported that in the first half of 2017, the country saw nearly $5.5 billion in medical office building sales. How big is that number? It’s nearly the total volume of medical office building sales recorded in 2012 through 2014 in the United States.
The biggest sale in the first half of the year was HTA’s $2.2 billion acquisition of the Duke Realty healthcare portfolio this June. There are other major sales in the pipeline, though, with JLL predicting that 2017 medical office building sales will shatter the 2015 record of $9 billion.
The best news? The market has not been slow to respond to the increased demand for medical office properties. JLL said that developers have been quick to create new medical supply, pointing to the large developer-built portfolios offered by companies such as Duke Realty and Meadows & Ohly.
JLL only predicts good things for this segment going forward. Saying that new capital from investors seeking high yields will only provide a greater boost for this segment of the commercial real estate industry.
Source: RE Journals