MOB Sales Soar as Cap Rates Slide

NEW YORK CITY—In a year that saw the largest volume of medical office building sales on record, prices took a sharp dip before soaring steadily upwards while cap rates ended the year on a downward slant. Cap rates in the MOB sector have been generally trending downward since the fourth quarter of 2012, according to advisory group Hammond Hanlon Camp LLC.

The year prior to 2013 saw MOB sales volume of $5.2 billion nationwide, and HHC says it was unsurprising that last eyar saw that tally surpassed by a wide margin. “Over $6.4 billion in transaction volume was reported by Real Capital Analytics in 2013, making it the most active year in the medical office building industry’s young but growing history,” according to HHC’s quarterly update on the sector. “The annual volume represents over $1 billion in additional transaction volume compared to prior peak volumes of between $5.4 and $5.5 billion in 2006 and 2007.”