Transaction volume for healthcare real estate stalled in the latter half of 2022 as rising borrowing costs and mounting economic uncertainty pushed investors to the sidelines, according to a new report from JLL.

While medical office deal flow was buoyed by the merger of Healthcare Realty Trust and Healthcare Trust of America, quarterly transaction volume for the last two quarters of the year dropped sharply amid several hikes of the federal funds rate. Spreads between the 10-year Treasury and MOB cap rates also narrowed, dropping from 400 to 500 basis points in 2019-2021 to just over 230 basis points in Q4 2022.

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Lynn Pollack



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