Kim Kretowicz’s Post

Medical Outpatient Sector: A Cornerstone of Resilience in Commercial Real Estate The medical outpatient building (MOB) sector continues to demonstrate resilience and growth, setting new benchmarks in key performance indicators. The following data highlights the sector's robust health and promising outlook: ·  Occupancy Rates: Historic high of 93%, indicating strong demand and limited supply ·  Rising Rental Rates: Average MOB triple-net asking rent increased by 0.5% quarter-over-quarter and 1.3% year-over-year to $24.70 per sf ·  Active Development: 11.2 million sq. ft. of MOB inventory under construction across 59 U.S. markets signals long-term growth potential ·  Stable Investment Volume: Q1 2024 saw $1.6 billion in MOB sales, indicating continued interest in the sector These trends underscore the MOB sector's attractiveness for investors and developers alike. Sources: CBRE, National Council of Real Estate Investment Fiduciaries (NCREIF) #realestate #CRE #healthcare #investing #economy

Here are 5 hospital and health care trends we are monitoring right now: 1.     Hospitals are looking for ways to monetize unused bed tower space. This trend comes and goes every few years. We are working with a number of hospitals that plan to lease bed tower space to inpatient hospice, inpatient rehab and long-term acute care hospitals. 2.     Hospital sale-leasebacks are under the microscope in a number of states right now in light of the Steward Health bankruptcy. This news will likely make it harder for existing general acute care hospitals to complete sale-leasebacks of their inpatient space. It could also impact the sale of existing hospitals currently owned by for-profit real estate investors. We are working on an webinar on this topic. 3.     The news about Steward Health has resulted in a number of stories comparing for-profit and non-profit hospital operators. I believe there is a place for both in the market. Maybe the industry should also consider a hybrid model like B corporations? B corps are for-profit companies that make a commitment to certain social and environmental initiatives. There are a number of B corps in the clothing industry. Think of Allbirds, TOMS, or Patagonia. 4.     Government agencies are looking for ways to more efficiently operate their inpatient facilities. They are seeking partnerships with non-profit and for-profit hospital operators. The partnerships come in the form of whole-hospital leases, management agreements and joint operating agreements. 5.     A number of clients are considering large-scale mixed use projects next to their hospital campuses. The goal is to create an ecosystem of apartments, retail, restaurants and other uses that enhance the community and create a destination anchored by the hospital campus. 

Seniors Housing is now included as a standalone sector in the Expanded NPI (NCREIF Property Index), the most widely used private real estate investment benchmark in the U.S. This long-awaited and highly important recognition raises the senior housing property type’s visibility with investors and could help drive much-needed capital into senior housing and care.   NIC has participated in National Council of Real Estate Investment Fiduciaries (NCREIF) membership for more than two decades, continually highlighting the unique investment characteristics of senior housing. We are thrilled with this important milestone for the sector and look forward to its potential growth within the index.   Learn more about the NPI expansion, plus first quarter 2024 senior housing investment returns in the NIC Insider newsletter: https://hubs.li/Q02DsJTs0