Growth in ASCs, urgent care centers cause major dip in medical office building cap rates

Capitalization rates for real estate are falling as more practices are looking to invest in surgery centers, urgent care centers and other outpatient medical facilities, according to National Real Estate Investor.

Here are three points:

1. In the fourth quarter of 2016, cap rates on medical office buildings fell to 6.5 percent.

2. This dip came after three previous quarters of a 6.7 percent cap rate.

3. Median cap rates averaged 6.4 percent, which was a decrease from 6.6 percent during the third quarter of 2016.

Hilda Martin, a principal at Revista, said, "There has been a lot of demand. A lot of new investment groups are entering the sector. There is more demand for less and less opportunity, and it's just very competitive out there now."

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