Issue link: https://viewer.e-digitaledition.com/i/1213128
Investor Interest in Medical Office Buildings Persists BY JENNA HAINES WHILE SALES VOLUME FROM MEDICAL OFFICE BUILDING INVESTMENTS IN 2019 APPE ARS TO BE DOWN FROM PRE VIOUS YE ARS, RECENT DATA SHOWS THAT THESE PROPERTIES ARE STILL HIGHLY SOUGHT AF TER IN TODAY'S RE AL ESTATE MARKE T. R E V I S TA , A M A R Y L A N D - B A S E D orga nization that specializes in healthcare property data, recently reported to the National Real Estate Investor that the medical office building sector's investment sales volume from the first half of 2019 totaled approximately $4.7 billion. While the data for the remainder of 2019 has yet to be processed, this number represents a downturn from investment sales volume numbers in 2018, which amounted to $6.5 billion at the end of the second quarter and $12.4 billion at the year's end. However, sources say this potential dip is likely the result of a slight decrease in "large portfolio transactions" and a reduced number of available properties — not a loss in interest. "... Appetite rema ins ver y strong, especia lly for high-quality medical office buildings," Matt Withey, Managing Director of Acquisitions at Virtus Rea l Estate Capital, a Texas-based real estate firm that does business in the medical office building sector, explains in the National Real Estate Investor. "Investors remain drawn to the durability of the cash flow stream, especially those who think we are in the later stage of the current economic cycle." n 059990059_Finance1.indd 1 1/3/20 9:36 AM Why Smart Doctors Seek FINANCIAL ADVICE BY JENNA HAINES A WHITE COAT AND FINANCIAL STABILIT Y DO NOT NECESSARILY GO HAND IN HAND. M A N Y PH YSICIA NS STRUGGLE to learn how to spend cau- tiously, save money and avoid debt. These financial obstacles can be attributed to a number of factors, including: + Student loans. Years of schooling can cause many physicians to start their careers with large amounts of debt. + Higher income taxes. As physicians start to take home bigger salaries, many forget to consider that they may have to pay a higher percentage in taxes than before. Such budget miscalculations can lead to large purchases, such as houses and cars, that physicians subsequently struggle to afford. + A lack of financial expertise. Money is often considered a taboo topic in academic healthcare environments, which can deny physicians the opportunity to learn from the failures and successes of others. + Private practice is a small business. Physicians who enter into private practice may lack the business acumen or the bandwidth to successfully manage the business while simultaneously practicing medicine. Seeking the help of a financial advisor can help physicians mitigate many of these money problems and ensure that their earnings are subsidizing their financial futures. However, not every consultant is a good fit, according to the American Medical Association. Physicians should aim to partner with financial advi- sors who are familiar with the particular challenges they face. n M D N E W S . C O M /// M D N E W S C E N T R A L N E W Y O R K ■ 2 0 2 0 F I N A N C E ❰❰❰❰❰ 1 9