Recap: Healthcare Real Estate Sector Update

Our last NCAI Connect featured Gerald Quattlebaum with Flagship Healthcare Properties who presented a comprehensive look into the healthcare real estate sector. He discussed the development and acquisition of healthcare properties as well as Flagship’s private REIT which has managed to maintain stability in the current economic climate. Private equity increased their share of buying medical office buildings (MOBs) compared with hospital/health systems, provider owners, and REITs. Gerald discussed cap rate trends for on and off campus properties which are holding steady in 2020. Portfolios are seen to be traded at a premium, and overall, pricing remains steady for MOBs. Of the top 50 active markets, Charlotte was third, following New York and LA.  The overall effects of COVID-19 do not appear to impact healthcare properties which are considered a ‘safe harbor’ but there are potential sale-leaseback opportunities if owners and investors decide “to dispose of capital-intensive real estate holdings.”

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