The medical office building (MOB) sector continues to outperform, driven by limited new supply, steady demand for outpatient care, and growing investor confidence in healthcare real estate. As health systems and providers expand outpatient services, MOB fundamentals remain strong across the U.S.
Download the full CBRE Q4 2025 U.S. Medical Outpatient Buildings Report:
CBRE Q4 2025 U.S. Medical Outpatient Building Figures Report (PDF)
Strong Fundamentals Continue Across the MOB Sector
According to the CBRE Q4 2025 U.S. Medical Office Buildings Report, key indicators highlight the ongoing strength of the medical office market:
- $6.1 billion in quarterly investment volume
- 7.1% average cap rate
- 1.26 million square feet of positive net absorption
- 9.8% vacancy rate
Demand for outpatient space continues to outpace new construction, creating upward pressure on rents and reinforcing the long-term stability of MOB assets.
Rent Growth Reaches New Highs
Average asking rents climbed to a record $25.23 per square foot in Q4, increasing both quarter-over-quarter and year-over-year, reflecting sustained demand and tight supply conditions.
At the same time, vacancy rates declined slightly, signaling continued tenant interest from providers seeking modern outpatient facilities.
Top Markets Leading Investment Activity
Several markets attracted significant investment in medical office buildings:
- Washington, D.C. led the nation with $536 million in trailing four-quarter investment volume
- South Florida followed closely with $512 million
- Phoenix recorded $468 million and shows strong population-driven demand
Development activity remains active, especially in Sun Belt markets like Phoenix, Dallas, and Houston, which lead new construction pipelines.
Investment Momentum Accelerates
Healthcare real estate investment surged in Q4:
- Quarterly investment volume jumped 122% to $6.1 billion
- Annual volume reached $12.6 billion, up 35% year-over-year
- Average sale prices increased to $300 per square foot, outperforming traditional office assets
A major transaction involving Welltower helped drive this activity, underlining strong institutional demand. Cap rates rose modestly to 7%, reflecting a balanced investment climate.
What This Means for Healthcare Real Estate
The shift toward outpatient care delivery continues to underpin demand for medical office space. With constrained supply, rising rents, and resilient occupancy, MOBs remain one of the most stable and attractive sectors in commercial real estate.
For healthcare providers, this climate reinforces the importance of strategic real estate planning and partnerships to secure high-quality space in competitive markets. For investors, MOBs offer a compelling combination of income stability, long-term growth, and alignment with healthcare delivery trends.
The HBRE Perspective
At HBRE, we see continued opportunity in aligning providers, health systems, and investors around thoughtful, long-term healthcare real estate strategies. As the outpatient model evolves, successful projects will require collaboration, capital alignment, and a clear vision for the future of care delivery.
Connect with HBRE
Looking to navigate today’s evolving healthcare real estate landscape?
HBRE partners with health systems, providers, and investors to unlock value, optimize portfolios, and deliver strategic real estate solutions tailored to the future of care.
Let’s start the conversation. Connect with our team to explore how we can support your next medical office or outpatient strategy.
