- CBRE, Colliers, Marcus & Millichap and Newmark all reported a significant drop in earnings during the second quarter based on transaction volumes that are down about 50% from a year ago. CBRE reported negative cash flow during the quarter, JLL reported a 99% drop in net income from a year ago and Marcus & Millichap reported a 59% drop in revenue from a year ago. The firms cited the banking crisis and interest rates as primary reasons for the slowdown in the real estate industry.
- The health care sector added 63,000 jobs in July based on a new report from the Bureau of Labor Statistics. That is the highest number of new health care jobs reported over the past twelve months. A majority of the jobs were in outpatient health care facilities and within the hospital sector.
- Hospitals continue to struggle financially with the median hospital operating margin at 1.4% according to a Kaufman Hall report. Even though provider productivity is up 10% from a year ago, labor costs continue offset revenue generated from increased provider productivity.
- Banks continue to tighten lending requirements according to a new survey of loan officers. 51% of loan officers reported that underwriting and lending requirements have become more stringent over the past three months. Loan officers cited “uncertain economic conditions” and “reduced tolerance for risk” as the primary reasons for the changes to their lending criteria.
- Hall Render is hosting a webinar titled “Value-Based Care: Background, Current Issues and Practical Tips” on Thursday, September 7. A registration link can be found here.
- Commercial property insurance premiums were up 20% in Q1 and are up nearly 10% in Q2 according to a new article. Inflation and natural disasters were cited as the reason for the increase in premiums.
- Orlando Health acquired a large multi-specialty group with 54 locations in the Tampa metro area and announced plans to build a new 300-bed hospital in Wesley Chapel, Florida (near Tampa).
- Jackson Health System in Miami, Florida announced plans to invest $300 million to expand its emergency department by 130,000 square feet.
- Cooper University Health released more details on the ambulatory care center it’s developing in a former Sears department store in a South Jersey mall. The center will be 166,000 sf and offer 26 different specialty health care services.
- Residents in Muskegon, Michigan started a petition to push for a second hospital in the community. Residents argue that the lack of competition in the market has resulted in long wait times for emergency care.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
