According to CBRE’s 2025 U.S. Healthcare Real Estate Outlook report, the market for medical outpatient buildings (MOBs) in the United States is expected to see a decrease in vacancy rates and an increase in rents, leasing activity, and sales volume by 2025. Rents are projected to rise by up to 1.8% over the next two years while vacancy rates are predicted to drop from 9.57% in Q3 of 2024 down to just under 9.46% at the end of 2025.
CBRE Americas healthcare leader Bryan Johnson stated that long-term demographic trends and increased healthcare spending will continue driving growth within this sector, setting it apart from other property types that may be more susceptible to short-term economic fluctuations.
These anticipated gains for MOBs come after a period of volatility over recent years due largely in part high interest rates and construction costs as well as reduced demand for administrative space by large healthcare systems implementing hybrid work models starting back around mid-2018 through early-2019; however, with lower interest rates on the horizon along with continued growth within both job opportunities related directly or indirectly towards providing care services coupled alongside advancements made possible through technology allowing more procedures being able performed at outpatient facilities have all contributed towards helping this particular sector hit an inflection point during current year which should help drive future success moving forward into upcoming quarters.
