Demand for medical office buildings on the rise for investors

Investor demand for medical office buildings hit a record high in the second half of 2022, bolstered by an increased patient demand for ambulatory and outpatient services in the wake of the COVID-19 pandemic, according to a Feb. 2 report from globest.com.

In 2020, total investment in medical office buildings sat at $11.9 billion, increasing to $17.4 billion in 2021. By the third quarter of 2022, investor demand was at its highest according to a report from investment management firm Colliers cited by globest.com. 

The medical office building sector has added more than 60 million square feet of space in the top 50 U.S. metropolitan areas over the last four years. 

Outpatient surgery volumes are also expected to grow 16 percent in the next 10 years, according to the report, which cited commercial real estate developer Avison Young, providing more demand for medical office buildings.

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