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MOBs Poised for Higher Rents, Lower Vacancies
The market for U.S. medical outpatient buildings (MOBs) is poised for lower vacancy and higher rents, leasing activity and sales transaction volume in 2025, CBRE said in its 2025 U.S. Healthcare Real Estate Outlook report. Rents are forecast to rise as much as 1.8% in 2025 and 2026, while vacancy will decline to 9.46% as 2025 ends, down from 9.57% in 2024’s third quarter.
“The medical outpatient building market is propelled by long-term demographic and healthcare spending trends that sustain a rising trajectory,” said Bryan Johnson, CBRE Americas healthcare leader. “This distinguishes the sector from other property types that are often affected by short-term economic cycles.“
2025’s anticipated gains would come after a few volatile years. The sector slowed in 2023 amid high interest rates and construction costs and a falloff in leasing administrative space by large healthcare systems due to hybrid work. This year, the sector hit an inflection point with the prospect of lower interest rates, growing demand for healthcare services, healthcare job growth and technological advancements allowing more medical procedures to shift to outpatient facilities.
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