MOB Investment Volume Climbs for Second Consecutive Quarter

Executive Summary

• Medical outpatient building (MOB) investment volume rose by 1% quarter-over-quarter to $2.51 billion, bringing the trailing-four-quarter total to $8.5 billion.
• MOB sale prices averaged $281 per sq. ft., down by $10 from Q2 but 41% higher than the average price of traditional office buildings.
• The average MOB cap rate rose by 7 basis points (bps) quarter-over-quarter to 7.0% and has ranged between 6.9% and 7.0% for four consecutive quarters.
• Average MOB triple-net asking rent increased by 0.4% quarter-over-quarter and 1.3% year-over-year to $24.97 per sq. ft.
• Net absorption of 707,000 sq. ft. in Q3 fell by 70% from Q2, bringing the trailing-four-quarter total to 4.8 million sq. ft.
• The 59 U.S. MOB markets tracked by CBRE had a combined 8.9 million sq. ft. of inventory under construction as of Q3, down by 22.5% from Q2.