MOBs Grow Up; And So Does Its Portfolios

BOSTON-As a commercial real estate sector matures, conventional wisdom suggests it attracts increasing interest from larger investors, such as real estate investment trusts and institutions. These well-heeled buyers often have sizable investment allocation targets, and it’s usually not practical for them to try to achieve those objectives with one-off deals. Thus, as a sector matures, the proportion of portfolio sales increases relative to single-asset sales.

Has that maturation been occurring in the healthcare real estate market, specifically among medical office buildings? Mindy Berman, a managing director with Jones Lang LaSalle and its Healthcare Solutions Group, suspected that it was. So she and her research team recently dug into 12 years of data to see if the theory was valid. Their conclusion? It sure looks that way.