Medical Office Building M&A Activity Increases 14% in Q1:23


Merger and acquisition activity in the Medical Office Building (MOB) sector increased by 13.7% in Q1:23, according to data captured in LevinPro HC. Additionally, the first quarter of 2023 had a 5% increase in activity compared with Q1:22 when 55 MOB acquisitions were announced.

“Demand in the healthcare real estate market is higher than ever,” said Dylan Sammut, Editor of Healthcare at Irving Levin Associates. “Industry tailwinds, such as aging demographics, are calling for specialized medical facilities and properties. This has kept activity flowing while other sectors have slowed.”

Announced spending increased in the first quarter by 21.3% from $817 million in Q4:22 to $991 million in Q1:23. The largest MOB deal by disclosed price was Big Sky Medical Real Estate’s acquisition of a 10-property medical office portfolio for $190 million.

In Q1:23, a few select states saw a significant concentration of M&A activity in the MOB sector, as per data collected by LevinPro HC. Among these states, Tennessee recorded the highest number of transactions with 11 deals, accounting for 19% of the total. Following close behind was California with seven deals, Illinois with six, Florida with five and Texas with four.

The busiest acquirer in the MOB market during Q1:23 was Montecito Medical, with 11 deals, encompassing 261,307 square feet across the United States. Montecito Medical’s largest transaction of the quarter was the acquisition of a 120,000-square-foot cancer treatment center in Columbia, South Carolina for $48 million. The second busiest acquirer in the MOB sector was Four Corners Property Trust, with five deals, and the third busiest acquirer was Big Sky Medical Real Estate with three deals.

“Industry experts we’ve spoken with fear there might be a slowdown due to rising interest rates and other headwinds,” continued Sammut. “But the healthcare real estate market is resilient, and there are few better investments in the industry.”

All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of LevinPro HC. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.