Redistribution of <br />Medical Office buildings (MOBs)<br />UNDER HEALTH CARE REFORM<br />2/28/2011<br />© Street Sotheby...
Historical Perspective<br />2008<br />Commercial real estate values are down 40 to 50%<br />2009<br />MOBs buffered from t...
Current Trends<br /><ul><li>Stocks, bonds, raw land, precious metals and commercial real estate in general are all under p...
Quality MOBs are turning out to be a bright spot in an otherwise dismal real estate market
Traditional real estate investors and Real Estate Investment Trusts, REITs, need to keep investing on a regular basis as p...
According to National Real Estate Investor® health care REITs continue to be in high demand</li></ul>2/28/2011<br />© Stre...
Current Trends<br /><ul><li>U.S. REITs own up to 15% of all institutional quality commercial real estate in major markets
REITs are a financial powerhouse with a total market capitalization of $300 billion
Upcoming SlideShare
Loading in …5
×

Redistribution of Medical Office Buildings under Health Care Reform

1,084 views

Published on

1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total views
1,084
On SlideShare
0
From Embeds
0
Number of Embeds
26
Actions
Shares
0
Downloads
12
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

Redistribution of Medical Office Buildings under Health Care Reform

  1. 1. Redistribution of <br />Medical Office buildings (MOBs)<br />UNDER HEALTH CARE REFORM<br />2/28/2011<br />© Street Sotheby’s International Realty<br />
  2. 2. Historical Perspective<br />2008<br />Commercial real estate values are down 40 to 50%<br />2009<br />MOBs buffered from the real estate slide<br />Credit terms for physicians wanting to buy are tightening<br />Physicians joining hospital based employment<br />2010<br />60% of physicians are hospital based or salaried<br />Only 40% are fee for service or private practice<br />There is currently an abundance of medical office space for sale or lease due to changing practice patterns<br />2/28/2011<br />© Street Sotheby’s International Realty<br />
  3. 3. Current Trends<br /><ul><li>Stocks, bonds, raw land, precious metals and commercial real estate in general are all under performing
  4. 4. Quality MOBs are turning out to be a bright spot in an otherwise dismal real estate market
  5. 5. Traditional real estate investors and Real Estate Investment Trusts, REITs, need to keep investing on a regular basis as part of their business model
  6. 6. According to National Real Estate Investor® health care REITs continue to be in high demand</li></ul>2/28/2011<br />© Street Sotheby’s International Realty<br />
  7. 7. Current Trends<br /><ul><li>U.S. REITs own up to 15% of all institutional quality commercial real estate in major markets
  8. 8. REITs are a financial powerhouse with a total market capitalization of $300 billion
  9. 9. Commercial real estate braces for lease accounting changes which could have a detrimental effect on sale/lease back options
  10. 10. Reimbursement will not keep pace with inflation, therefore the need to cut costs will increase
  11. 11. Liability reform is needed to reduce costs
  12. 12. Movement toward mergers and acquisitions, “Bigger is Better”</li></ul>2/28/2011<br />© Street Sotheby’s International Realty<br />
  13. 13. Cain Bothers Newsletter Perspective<br />Timing still good to sell medical office buildings<br /> Provide cash for mergers and acquisitions<br />Buyout exiting physicians<br />Cash to hire replacement physicians<br />Relocate practices to more strategic locations<br />Meet Health Care Reform goals:<br />Patient safety<br />Low cost<br />Efficient<br />Capable to handle large numbers of patients<br />Industry Insights Aug. 9, 2010 Issue 682 Cain Brothers Newsletter for Health Care Industry<br />2/28/2011<br />© Street Sotheby’s International Realty<br />
  14. 14. The Physician’s Case FOR Sale/Lease Back<br />The entire lease payment is deductible<br />Cash available to invest in business expansion plans including additional locations<br />Lack of property mortgage affecting tenant’s balance sheet<br />Reduced liabilities on the tenant’s balance sheet<br />Continued long term operational control of the property<br />Reduced upfront cash requirement<br />2/28/2011<br />© Street Sotheby’s International Realty<br />
  15. 15. The Investor’s Benefit FOR Sale/Lease Back<br />Regular assured stream of payments<br />Depreciation deductions from taxable income<br />Little or no time commitment<br />All the benefits of appreciation over the life of the property<br />Higher return than other investment alternatives<br />Investing in Medical Office Net Lease Properties, October 2008;: www.stanjohnsonco.com<br />2/28/2011<br />© Street Sotheby’s International Realty<br />
  16. 16. For a valuation of your MOB and possible sale lease back contact:<br />Gerard M. Papp D.O. <br />gerard.papp@sothebysrealty.com<br />O-614-538-8895 EXT 188<br />C-614-531-8887<br />TOM DALCOLMA<br />tom.dalcolma@sothebysrealty.com<br />O-614-538-995 EXT 180<br />C- 614-439-5311<br />2/28/2011<br />© Street Sotheby’s International Realty<br />

×