The BGL Medical Office Development Market Update is a quarterly research publication highlighting national medical office building transactions, and industry trends within the medical office building real estate market.
Medical office building sales slowed in Q2 2020 compared to Q2 2019 levels. Year-over-year transaction volume declined to $2.10 billion from $3.95 billion, a 46.9% decrease, and the quarterly transaction count fell to 171 from 393, a 56.5% decrease. Although transaction volume is down, price per square foot (PSF) averaged $334, an increase of 10.6% year-over-year. Medical office properties accounted for 29.4% of Q2 2020 office transactions—up 4% from the same quarter last year—highlighting continuing demand for this asset class.