In Q2 2026, medical office building (MOB) investment activity remained measured while continuing to improve from year-earlier levels. Total sales volume reached $2.9 billion (+19.2% YoY), compared with $2.4 billion in Q2 2025. A total of 292 properties traded during the quarter, as investors remained active but selective in deploying capital.
Transaction volume declined 8.0% from the prior quarter, while average deal size remained relatively stable at $10.0 million. The quarter’s largest transaction, the $260 million Bedford Collection portfolio, represented nearly 9% of total MOB sales volume.
Pricing metrics shifted during the quarter, largely reflecting the mix of assets that traded. Average price per square foot declined to $294, compared with $371 in Q1, but remained 3.7% above the $284 recorded one year earlier. Average cap rates increased approximately 23 basis points quarter over quarter to 7.1%, in line with Q2 2025 levels.
Q2 2026 MOB Market Condition Summary
- 7.1% Average Cap Rate
- $10.0M Average Deal Size
- $294 Price Per SF
Quarterly MOB Market Trends
Average MOB cap rates increased to 7.1% in Q2 2026, reflecting the composition of transactions completed during the quarter rather than a clear broad-based repricing of medical office assets.
MOB sales volume reached $2.9 billion, down modestly from the prior quarter but up 19.2% year over year, signaling continued improvement in transaction activity compared with 2025 levels.
Takeaway
Medical office fundamentals remain resilient, supported by rising occupancy, record asking rents, and limited new construction. At the same time, interest-rate volatility and disciplined underwriting continue to keep capital deployment selective.
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