CHICAGO—The single tenant medical sector remained popular with investors through the first three quarters of 2016, and several demographic factors will likely sustain that interest over the next few years, regardless of changes in the nation's political landscape.
Transactions in the sector, specifically among medical assets priced under $10 million, were up about 8% when compared to the first three quarters of 2015, according to a new report from The Boulder Group, a single tenant net lease firm in suburban Chicago. In the same time period, the number of transactions in the overall net lease market was down 2.6%. And the median asking cap rate for medical properties remained unchanged at 6.5%.
The third quarter, of course, ended before the political earthquake of Nov. 8. And just like observers of every commercial real estate sector, analysts of the net lease market are carefully watching to see how it responds to the transformation.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
