Medical outpatient building investment activity accelerated in the first half of 2026 as capital market conditions improved and lenders showed greater willingness to finance the sector, according to new research from Cushman & Wakefield. The firm reports that medical outpatient building, or MOB, transaction volume reached $6.7 billion during the first six months of the year, representing a 21% year-over-year increase.
Cushman & Wakefield links the upswing in sales to a combination of more supportive debt markets and resilient property-level performance. Expanding lender appetite is allowing more deals to clear the market, while the underlying operations of MOB assets continue to demonstrate stability, encouraging both existing and new investors to allocate capital to the space.
Pricing metrics show that investors were willing to accept tighter yields in exchange for exposure to the sector. MOB cap rates declined by 35 basis points year-over-year to reach 6.8%, reflecting cap rate compression compared with the first half of 2025. At the same time, the research indicates that average asset pricing climbed to $368 per square foot in the second quarter of 2026, underscoring firm buyer demand for medical outpatient product.
Portfolio activity was a notable driver of overall volume. Cushman & Wakefield reports that portfolio transaction volume more than doubled relative to the first half of 2025, surpassing $2.6 billion. The portfolio premium widened to 100 basis points over single-asset cap rates, signaling that investors are paying up for scale, diversification and the efficiencies associated with acquiring multiple MOBs in a single transaction.
Sandy Romero, head of office & alternatives research at Cushman & Wakefield, said that cap rate compression, renewed debt market liquidity and increased portfolio demand collectively indicate rising investor confidence in the MOB space. Romero added that consistent rent growth and high occupancy continue to support the sector’s fundamentals, which, coupled with more accessible capital, is expected to keep medical outpatient buildings attractive to institutional investors through the remainder of 2026.
