CUSHMAN & WAKEFIELD
MEDICAL OUTPATIENT BUILDINGS CAPITAL MARKETS
MID-YEAR 2025 UPDATE
VANTAGE POINT
Medical Outpatient Buildings Capital Markets Mid-Year 2025 Update
NOW AVAILABLE
The healthcare sector is not immune to broader market challenges which dampened investment sales activity in the first half of 2025. However, medical outpatient buildings (MOB) have strong underlying fundamentals, including robust rent growth and high occupancy rates, which support investor interest in the sector.
Key Takeaways:
• The slowdown in sales volume was largely driven by a significant decline in portfolio activity, with single-asset sales outpacing portfolio transactions.
• Portfolios that traded in the first half of 2025 did so at a premium to single-asset sales, as the “portfolio premium” returned with further cap rate compression.
• MOB loan origination growth lagged the main property types as lower MOB sales volume impacted issuance. Lender appetite remains strong, but deals have been dampened as investors navigate price discovery.
• MOB total returns continue to outpace both the overall NCREIF index and other alternative assets. Income returns have been particularly strong and underscore why many owners continue holding on to assets.
CONTACTS
Sandy Romero
Head of Life Sciences & Healthcare Insights
sandy.romero@cushwake.com
Gino Lollio
Co-Head of U.S. Healthcare Capital Markets
gino.lollio@cushwake.com
Travis Ives
Co-Head of U.S. Healthcare Capital Markets
travis.ives@cushwake.com
Tyler Morss
Director, Equity & Debt
Healthcare Capital Markets
tyler.morss@cushwake.com
Lorie Damon
Executive Managing Director
Healthcare Advisory Practice
lorie.damon@cushwake.com
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