Medical Office Big Among Private Investors in 2012


With the U.S. Supreme Court currently hearing arguments about the constitutionality of portions of President Barack Obama’s Patient Protection and Affordable Care Act, the healthcare industry is facing many unknowns. Marcus & Millichap (MMI)’s recent Medical Office Research Report charts the effect of these unknowns on the sector. It also takes a look at who the most active buyers of healthcare assets will be in 2012.

doctor symbol1 Medical Office Big Among Private Investors in 2012Marcus & Millichap’s report found that private investors are set to take the lion’s share of medical office activity this year—particularly REITs and institutions.

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With so many unknowns existing in the industry—such as the Supreme Court hearings—rents are trending downward, as more medical offices put off making decisions about their space needs. On a nationwide basis, they declined 1.9 percent in 2011. The report found this particularly true in areas like New York City. Asking rents are projected to continue to decline in 2012.

Private investors are anticipated to participate in the most acquisitions in 2012, with REITs and institutions targeting the off-campus buildings affiliated with health systems.