ENCINO, CA-As occupancies firm up and speculative construction comes to a near halt, the medical-office investment sector is expected to improve through year end, according to Marcus & Millichap’s Medical Office Research Report on the first half of 2012. More private investors are expected to step up to acquire healthcare assets, but REITs and institutions will dominate investment activity this year, and on-campus properties or institutional-quality, near-campus properties will drive demand.

“Medical-office properties appeal to a much broader array of investors than they have in the past,” Alan Pontius, managing director of the healthcare real estate group for Marcus & Millichap, tells GlobeSt.com. “Both private and public investors will continue to expand their MOB portfolios to take advantage of an anticipated surge in healthcare demand as baby boomers age. That said, the evolving healthcare model will drive more differentiation in prices by property size, quality and location, and could even render some aging properties obsolete.”

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