As a result of the COVID-19 pandemic, the net lease medical office market has seen all-time highs in investor demand, transaction volume, and cap rate compression. In 2021, medical office transaction volumes topped $16 billion—the sector’s all-time highest. Previously, the medical office sector saw its best year in 2017 with $15.5 billion in transaction volume. With many retail tenants struggling to pay rent as a result of the pandemic, investors found a safe haven in medical office assets. The medical office sector established itself as an area in which investors could shield themselves from the three main concerns within the retail sector:  the pandemic, a recession, and the Amazon Effect. 

I recently had the opportunity to lead our acquisition of the SiteOne Landscape Supply anchored industrial facility located at 74991 Velie Way in Palm Desert, CA. This acquisition illustrates our strong desire for industrial properties as well as our openness to multi-tenant assets.