26.5 Million Square Feet of Medical Space Sold in 2016
Two newly published reports from health care real estate organization Revista are shedding light on how the medical office industry fared last year.
The first—the fourth-quarter 2016 Revista MOB Sector Fundamentals Report—includes data reported by major medical office owners who, combined, own about 150 million square feet of medical office space.
As of the fourth quarter of 2016, the average occupancy rate of medical office buildings nationwide was 92.6%, the report says.
Medical office owners made, on average, $30.30 in rental revenue per occupied square foot in the fourth quarter, and incurred an average of $9.80 per occupied square foot in operating expenses.
Revista’s year-end 2016 Medical Real Estate Transactions Report, meanwhile, revealed 546 medical office buildings—amounting to about 26.52 million square feet of space—traded hands in 2016. The buildings traded at an average cap rate of 6.5 and an average price of $285 per square foot.
Written by Mary Kate Nelson