Articles and Blogs

Seven metro areas accounted for approximately one-third of the inventory growth in independent living over the past year. The areas were (i) Dallas; (ii) Houston; (iii) Austin; (iv) Detroit; (v) Philadelphia; (vi) Ft. Myers; and (vii) Columbus, OH. Lending for new senior living projects was constrained in Q4 2023, according to a recent report.... READ MORE

CMS’s minimum staffing rule for skilled nursing facilities (“SNFs”) continues to make waves in the SNF industry. According to a new article, only one in five SNFs currently meets all the staffing requirements. Of the SNFs that meet the minimum staffing requirements, about 41% are owned by non-profit corporations and 10% by for-profit entities.... READ MORE

The Massachusetts Development financing agency issued a $400M tax-exempt bond on behalf of Beth Israel Lahey Health, which will use the proceeds to buy, build, expand, remodel and renovate facilities at multiple locations across the health system. Under a bill introduced in Congress, 11 Veterans Affairs hospitals across the U.S. could obtain up to... READ MORE

New Consumer Price Index (CPI) data shows that inflation eased up in April. The cost of goods and services increased 0.3% from March to April, which is down from 0.4% the previous month. Overall, the CPI has increased 3.4% year-to-date, down from 3.5% in March. This data “keeps alive the prospect of the Fed... READ MORE

In a recent interview, the CFO of CA-based Prime Healthcare shed light on its real estate strategy. In 2020, most of Prime’s facility real estate was owned by a third party, with annual rental rates over $1.4B. Four years later, Prime now owns the real estate of 40 of its 44 hospitals and is... READ MORE

Walmart Health announced plans to close all 51 of their health care clinics and virtual health care operations, citing a lack of profitability. A Walmart spokesperson said, “Health care is expensive to run. We were finding that the increased labor and operating costs environment, like with reimbursement, both public and private, made it difficult... READ MORE

JLL issued a Medical Outpatient Building Perspective whitepaper. Key takeaways: (i) outpatient volumes will continue to grow, particularly in off-campus MOBs; (ii) MOB demand has outpaced supply since 2021, causing occupancy to rise; (iii) rising construction costs are leading to less new construction; and (iv) MOB cap rates have risen 100-150 bps since Q4... READ MORE

Medical Properties Trust has sold its interests in ten hospitals for approximately $1.1 billion. Five of the hospitals are located in Utah and leased to an affiliate of CommonSpirit. They were sold to a joint venture. The remaining five hospitals are located in California and New Jersey. They were sold to Prime Healthcare. The... READ MORE

Last week’s CPI report indicated persistent inflation, leading the WSJ to report that Federal rate cuts are now a matter of “if, not just when.” Interest rates remaining higher for longer could cause more pain in the commercial real estate industry, although some experts predict owners will give up on waiting. Hartford HealthCare issued... READ MORE

BBG Real Estate Services published its Seniors Housing Investor Survey 2024. Among the findings include: (i) cap rates for senior housing are expected to remain flat or decrease in 2024; (ii) rental rate growth is expected to increase significantly, particularly for assisted living and memory care; and (iii) higher transaction volume is expected to... READ MORE