Although national MOB rents have remained mostly flat over the past four years—rising just 0.1% in Q1—performance varies widely by market. Thirteen metros posted year-over-year rent increases above 5%, with some exceeding 7%. This growth is especially pronounced in secondary, expansion-focused markets.
Demand for medical office buildings is being fueled in large part by the continued expansion of outpatient and ambulatory care, increasing the need for surgery centers, urgent care facilities, and specialty clinics.
Healthcare real estate is evolving to meet rising demand. Key influences include pressure on insurance reimbursements, the need for greater patient convenience, and advancements in medical technology. Together, these factors are driving a shift toward a more decentralized healthcare system, with a notable expansion in outpatient care facilities.
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