7. Repurposing is on the rise. Long derided as too expensive, the adaptive reuse of low-cost retail and office space now makes economic sense for expanding healthcare providers. “It also offers speed-to-market advantages,” Mr. Mugford says.
8. Monetizations haven’t happened as often as expected. The sale of non-core assets such as MOBs by healthcare providers was a hot topic in the mid-2000s, Mr. Mugford says, “But it has not expanded as quickly as many expected."
9. MOB sales have soared. Although there have been relatively few hospital-driven MOB sales in recent years, others – particularly private developers and investors – have been actively selling. Final data is not yet available, but 2012 was shaping up to be perhaps the biggest year ever for MOB sales in terms of total dollar volume, RCA says.
10. The sector is still growing. “The same factors that made healthcare real estate a good business to be in back in 2003 make it a good business to be in today,” Mr. Mugford says, “plus healthcare reform is likely to drive even more development, financing and investment activity.
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