Medical Office Fundamentals Strengthen, But Providers Face Cost Pressures
Despite economic concerns and industry challenges,
the medical office property sector (MOB) continues to
go from strength to strength, setting record highs for
asking rents, sales volume, and pricing over the past
four quarters. Demand is outpacing supply, vacancy
remains tight, and cap rates have
remained relatively stable. As a result, development
activity is gaining momentum, reflecting confidence in
the sector.
This performance is particularly impressive given the
continued cost containment pressures faced by the
healthcare industry. In this report, we examine current
MOB fundamentals and recent sector performance,
followed by an outlook to the sector’s future.