MOB/ASC/Hospital Transactions, Groundbreakings & Openings
Key Questions
What was the Q1 investment volume and cap rates for MOB properties?
MOB investment reached $2.9B, up 78% year-over-year, with cap rates between 6.8-6.9%. This reflects strong transaction activity across multiple markets.
What new hospital and medical office developments are underway?
Examples include Driscoll Children's Hospital's 140-acre campus in Portland TX, a new hospital in Palm Beach Gardens, Orlando Health's project in Viera FL, and a $77M medical research building at University of Houston. Encompass Health is also adding a 36-bed rehab hospital in Bridgeport WV.
How are health systems influencing MOB and ASC transactions?
Health systems are buying back assets, as seen in Advocate Health's $23.4M purchase in Naperville IL and two Chicago-area acquisitions. This confirms a trend toward hospital-anchored and suburban expansion.
What legislation supports rural hospital viability?
The King Bill to strengthen rural hospitals passed the U.S. Senate, extending the Rural Community Hospital Demonstration program. It aims to improve facility viability in underserved areas.
What design approaches are hospitals adopting for flexibility?
Hospitals are incorporating trauma-informed design, flexibility for expansion, and enhanced patient experience features. Examples include projects at St. Anthony and KU Med, plus Cleveland Clinic's urgent care redevelopments.
Q1 MOB inv +78% $2.9B caps 6.8-6.9%; Driscoll Children's Hospital plans 140-acre campus in Portland, TX; BGO acquires fully leased Tampa MOB; new hospital opens in Palm Beach Gardens (first since 1979); Pinecroft TX groundbreak; JLL Boston acquisition; Houston/Scottsdale/Gurnee sales; Texas EC sale-leaseback; VA/Grady funding; Mariposa 110k sf MOB; Moffitt expansion; Aspirus Wausau expansion; Cleveland Clinic ED; Ascension Saint Thomas $148.5M campus. Robins & Morton breaks ground on 68k sf MOB in Greenwood, SC; Saugatuck sells 40k sf medical campus in Naples, FL for $20.4M to Montecito Medical; Wold Architects acquires JJCA; trauma-informed design trends. Latest: Novant Health buys SC land for $25M medical hub; HCA Florida Healthcare opening new ER in Ocala spring '27 ($15M, 45 FTEs). New: CBRE facilitates sale of MOB & ASC in Philadelphia MSA (93% leased, 9.8yr WALT); Echo Real Estate Capital acquires 150k sf MOB campus in Columbia, SC (85% occupied, MUSC anchor, value-add). Latest: Orlando Health announces new hospital and medical office building in Viera, FL, expanding in high-growth Florida market. Also: HSG Medical and Capital Healthcare Properties sell 42k sf cardiovascular ASTC in Naperville, IL to Advocate Health for $23.4M, confirming health system buyback trend. New today: Wexner Medical Center reaches tentative agreement for Violet Township, OH expansion (suburban Columbus hospital development); Advocate Medical Group fuels Chicago medical office surge with two property buys (hospital land near quantum campus and converted Planet Fitness MOB), further confirming health system buyback and suburban expansion trends. Latest: Encompass Health announces 36-bed rehabilitation hospital in Bridgeport, WV, adding to hospital development pipeline. University of Houston plans $77M medical research building (55k sf, summer 2028), adding to Texas academic medical construction. Also: $214.7M hospital project in rural NC (30-bed acute care, ER, oncology) approved; PAM Health 42-bed rehab hospital in Ohio opening Oct 2026; Cleveland Clinic funds $3M former Rite-Aid redevelopment into urgent care in Ohio. New today: King Bill to strengthen rural hospitals passes Senate (RCHD extension), supporting rural facility viability. Design trends: hospitals designed for flexibility and patient experience (St. Anthony, KU Med examples).