In 2025, medical office buildings (MOBs) have solidified their position as a cornerstone of commercial real estate (CRE) investment. Driven by demographic shifts, evolving healthcare delivery models, and economic resilience, MOBs offer investors a compelling blend of stability and growth potential.
Demographic Trends Fueling Demand
The aging U.S. population is a primary driver of increased healthcare services demand. By 2030, all Baby Boomers will be over 65, significantly expanding the senior demographic. This shift is expected to elevate outpatient healthcare spending by 31%, reaching nearly $2 trillion. Consequently, the need for accessible, community-based medical facilities is surging.
Shift Toward Outpatient Care
Advancements in medical technology and a focus on cost-effective care have propelled a transition from inpatient to outpatient services. Outpatient volumes are projected to grow by 10.6% over the next five years, outpacing inpatient growth. This trend underscores the increasing importance of MOBs in delivering healthcare services.
Economic Resilience and Investment Appeal
MOBs have demonstrated remarkable resilience amid economic fluctuations. With occupancy rates exceeding 92% and long-term leases ranging from 7 to 10 years, they provide consistent revenue streams. The specialized nature of medical practices, requiring significant tenant improvements, further enhances tenant retention and investment stability.
Strategic Location and Design
Modern MOBs are increasingly situated in suburban areas, aligning with patient preferences for convenient access.Approximately 65% of new medical office developments are now off-campus, reflecting this shift. These facilities are designed with flexible clinical spaces, advanced technology infrastructure, and patient-centric layouts to meet diverse healthcare needs.
Conclusion
As the healthcare landscape continues to evolve, MOBs stand out as a robust and adaptable investment within the CRE sector. Their alignment with demographic trends, healthcare delivery transformations, and economic stability positions them as a smart choice for investors seeking long-term value.
PLAZA COMPANIES IS THE PREMIER CHOICE IN COMMERCIAL OFFICE REAL ESTATE
