CBRE RESEARCH | NOVEMBER 2024
2025 U.S. Healthcare Real Estate Outlook
Aging Population, New Technologies, Consumer Convenience Drive Demand for Medical Outpatient Buildings
Demand for U.S. healthcare real estate is projected to increase in 2025, driven by an aging population, increasing healthcare spending and advancements in technology. Medical Outpatient Buildings (MOBs) are particularly well-positioned to benefit from these trends. Easing inflation and interest rate cuts are expected to further support leasing and sales transactions, with Boston, Houston and Dallas set to lead in MOB absorption.
Key Trends:
• Growing senior population: By 2030, seniors (65+) will make up 20% of the U.S. population, driving a 31% increase in outpatient healthcare spending to nearly $2 trillion.
• Rising demand for convenience: Driven by this aging population and consumer preference for conveniently located healthcare, MOB vacancy rates fell in 2024, and asking rents increased.
• Labor shortages continue: Healthcare employment is growing faster than overall U.S. employment, but labor shortages persist, increasing reliance on innovate new technologies and AI.
• Patient care drives leasing: Healthcare systems accounted for 31% of all healthcare-related leasing activity since 2019, with a notable shift towards leasing space for patient services.
• Investment volume is growing: MOB investment volume increased by 38% year-over-year to $2.5 billion in Q2 2024, with cap rates falling for the first time since mid-2022.
For more information, please contact:
Chris Bodnar
Vice Chairman
Investment Properties
+1 720 635 2653
Brannan Knott
Executive Vice President
Investment Properties
+1 443 983 6039
Zack Holderman
Senior Vice President
Debt & Structured Finance
+1 858 337 9412
Cole Reethof
Vice President
Investment Properties
+1 404 504 7864
Trent Jemmett
Senior Director
Investment Properties
+1 858 646 4740
Jesse Greshin
Vice President
Debt & Structured Finance
+1 860 808 4810
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