Vital Signs Fall 2021: Healthcare and Medical Office Report

VITAL SIGNS

STRONG APPETITE FOR MEDICAL OFFICE

Because of the resilience of medical office investments throughout 2020, investor appetite for medical office deals has remained strong, though transaction volume is lighter than 2020. Through August, 2021 transaction volumes have lagged both the 2020 (-11%) and 2017-2019 (-22%) average volumes. Since April, however, 2021 volumes have accelerated, outpacing 2020 by 51% and narrowing the gap with the pre-pandemic average. Single asset sales have been comparatively resilient, down just 11% year- to-date compared to the pre-pandemic average. Looking forward, we expect activity to increase through year-end above and beyond typical seasonality.

Because of the resilience of medical office investments throughout 2020, investor appetite for medical office deals has remained strong, though transaction volume is lighter than 2020.

6 | CUSHMAN & WAKEFIELD