Respondents believe healthcare capitalization rates will remain relatively flat at +/- 10 basis points (bps) across all healthcare property types in 2024 with on-campus medical offices continuing to command a premium over off-campus medical offices, according to a new report from Partner Evaluation Advisors.

Ambulatory surgical centers (ASC) is another leading industry segment, according to the report, which said that most investors are underwriting only a slight increase (<50 bps) between a going-in capitalization rate and an exit/reversion capitalization rate.

According to a November 2023 survey of leaders in the healthcare industry, the majority of respondents (42%) anticipated that capitalization rates would remain relatively flat over the next 12 months; 28% expected an increase of more than 25 bps; 26% of respondents expected rates to increase between 10-25 bps; and just 4% of respondents anticipated rates to decrease.