Medical office sales last year hit an all-time high. And JLL, in its latest research report, says that 2018 might be just as strong.
JLL, in its healthcare capital markets perspective published in February, said that medical office sales hit $10.4 billion in 2017. That beat all prior years, including the big year of 2015. That year saw $9.03 billion in medical office sales, and had stood as the best year ever for this sector
Until last year.
What caused 2017’s boom in medical office sales? JLL pointed to affordable prices for these properties. As the company says, for the first time cap rates below 5 percent for the top medical office buildings were no longer considered exceptional. At the same time, interest rates remained low.
Because of this combination, sellers earned the highest prices and lowest acquisition cap rates ever seen in this sector, JLL says.
And this year? JLL says to expect big things again in the healthcare sector.
“Going forward and in light of growing concerns about the other property sectors, growth in healthcare and medical office’s stability and long-term occupancy will continue to be a compelling story for investors,” JLL wrote.