Spring 2021 Edition
Telehealth: A Disruptor within Healthcare Real Estate
Commentary by: Todd Perman, CCIM, Vice Chairman

How will the development of telehealth services affect healthcare real estate?

The development of these technologies and the ability to connect and share information back and forth between healthcare providers and patients is a fantastic development to supplement in-person care and promote wellness. We do not expect a drop in demand for healthcare due to these new technologies; moreover, we see the intersection of technology and healthcare to be divergent and complimentary, resulting in new synergies.
Spring 2021 Healthcare M&A Spotlight: Average Seller Size by Revenue $676M
Commentary by: Eric Murphy, Managing Director

The first quarter healthcare mergers and acquisition transactions are seeing a significantly large transaction size compared to last year's first quarter and one of the largest average seller sizes in the past 10 years. One of the notable transactions for the first quarter of 2021 included:

  • CommonSpirt Health signed a letter of intent to sell critical access hospitals to Essentia Health. The deal includes CommonSpirit’s Alexius Medical Center in Bismarck ND, 13 critical access hospitals, clinics, home health services and senior living facilities.

$1.6B+ in MOB Transactions Closed in First Quarter 2021

Medical office building (MOB) transactions in the first quarter of 2021 were down 58% year-over-year; however, the market saw an increased focus on the property type, and cap rates tightened across all acuity types. The average cap rate was 6.4%, ten basis points lower than the first quarter of 2020 and 40 basis points lower than the average cap rate in the first quarter of 2019. The increased focus also lifted the average price per square foot ($/PSF) to a level unseen in the past eight years. 
Lake Health Beachwood Medical Center
Beachwood, OH

Total SF: 68,000
Sales Date: 4-15-21
Price: $58,250,000
Executive Leadership
Global Healthcare Services Team
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