- The most recent jobs report shows the labor market continues to cool off. In August, 142,000 new jobs were created, which is lower than the 162,000 jobs estimate that economists were expecting. Two Federal Reserve officials have said “the time has come” to cut interest rates.
- Kaufman Hall published a new hospital flash report showing that: 1) hospital finances continue to stabilize; 2) the average length of stay for patients is down, which is reducing hospital operating expenses; and 3) overall hospital financial performance has been strong in 2024. The average hospital operating margin is 4.1%.
- ASHA published its 2024 list of the largest senior housing owners and operators. The top five owners are: 1) Welltower; 2) Ventas; 3) Brookdale; 4) Harrison Street; and 5) Diversified Healthcare Trust. The top five operators are: 1) Brookdale; 2) Discovery; 3) Atria; 4) LCS; and 5) Erickson.
- CBRE published its Q2 National MOB Investor Update. MOB investment volume increased by 60% over the previous quarter. The average MOB cap rate is 6.9% and the average NNN MOB rental rate is $24.86/sf.
- Which regions of the U.S. have the highest MOB rents? According to new data published by Revista, the Pacific region had the highest MOB rents with an average rate of $31 sf. That’s roughly 29% higher than the Southwest region which had the second highest rates. The East North Central region (Midwest) had the lowest rents with an average of $19.48/sf.
- Hall Render published an article on ambulatory surgery center development and joint venture considerations.
- A new article says REITs aren’t bad for the U.S. hospital system. The primary challenge faced by American providers, according to the author, is a broken reimbursement system whose rates don’t keep up with the actual cost of care. The author goes on to say that sale-leasebacks coordinated by REITs can be a lifeline for struggling hospitals.
- Valley Children’s Healthcare announced plans for a 443-acre mixed-use project in Madera, California near its main campus. The project will include housing, health care, retail, recreation, office space and hospitality.
- Sutter Health announced plans to build a $380M, 165,000 sf cancer center in Modesto, California on its Sutter Memorial Hospital campus.
- Houston Methodist announced two new building projects totaling $247M. The first project will involve a $185M expansion of its Methodist West Hospital. The second project involves a comprehensive care center project that will cost $62M.
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.
