Douglas M. Pasquale, the REIT's president and CEO, pointed out"statistics reflect that during the dot-com bust of 2000, recessionof 2001 and the jobless recovery of 2002 and 2003, asking rentalrates for medical office fees barely budged." At the same time,however, standard office rates fell by 21% from their peak in thecycle, he noted.

NHP's medical office building portfolio is closing in on threemillion sf, steadily adding to holdings and ensuring a pipeline ofnew space through a deal that it signed in February with SanDiego-based Pacific Medical Buildings. The deal calls for NHP toeventually acquire up to up to $2 billion in existing and plannedmedical office properties from PMB. Specifically, it calls for NHPto acquire 18 multi-tenant medical office buildings, including sixthat are under construction, for $747.6 million. The buyer alsowill assume about $282.6 million of mortgage financing.

During the first two quarters of this year, NHP acquired eightof the 18 buildings for $198.3 million. Potential futureacquisitions of properties from PMB could then push the total to $2billion.