Cushman & Wakefield
MOB Capital Markets
Mid-Year Update
Medical Outpatient Buildings Capital Markets 2026 Mid-Year Update
The medical outpatient building (MOB) sector carried strong momentum into 2026, with improving capital markets, expanding lender appetite and resilient fundamentals fueling a notable pickup in investment activity.
Medical Outpatient Buildings Capital Markets 2026 Mid-Year Update
The medical outpatient building (MOB) sector carried strong momentum into 2026, with improving capital markets, expanding lender appetite and resilient fundamentals fueling a notable pickup in investment activity.
Key Insights Include:
- Transaction Activity: MOB investment volume reached $6.7 billion in the first half of 2026, up 21% year-over-year (YOY), led by a surge in portfolio sales that more than doubled from a year ago.
- Pricing & Cap Rates: Cap rates compressed 35 basis points YOY to 6.8%, while the “portfolio premium” widened to roughly 100 bps as investors compete for institutional-quality assets.
- Lending Activity: MOB loan originations nearly doubled YOY, growing 88%, as debt markets expanded and lenders leaned into the sector.
- Financial Performance: MOB total returns climbed to 6.0%, outpacing the broader NCREIF Property Index, with strong income returns remaining the primary driver of performance.
- Tight supply, steady rent growth and elevated occupancy continue to underpin the sector’s fundamentals, reinforcing why healthcare real estate remains a preferred allocation for capital heading into the second half of the year.
Sandy Romero
Head of Office and
Alternatives Insights
Lorie Damon
Executive Managing Director, Healthcare Advisory Practice
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