The combination of long-term, net leases to tenants with low default rates, the stabilized cash flow to owners, and the adaptability of space make medical office buildings attractive to lenders.

These factors significantly reduce the likelihood of a borrower default under any loan secured against the property on which an MOB is located, according to Attorney Liam T. Krahe, managing attorney of Cohen Property Law Group, PLLC.

The stability is driving deals in the space even as transactions across CRE decline. The most recent example comes from Kayne Anderson Real Estate's $1.3 billion purchase of Synovus's medical office loan portfolio.

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