Here are five notes from the report:
1. A rise in demand for outpatient services, driven by an aging population with increasing disease prevalence, puts outpatient volumes on track to grow by 10.6% over the next five years.
2. The report indicates limited construction for purpose-built MOBs, particularly in the Sun Belt, where rent growth is steady and signals continued stability for investors and health system real estate. Population growth has also driven MOB construction in the region.
3. Absorption for MOBs hit 19 million square feet in the top 100 markets in the fourth quarter of 2024, up 15% from 2023.
4. Hospital systems accounted for 46% of all MOB leases in 2024, followed by specialty providers at 31% and general practitioners at 6%. Labs and imaging, dentistry and “other” made up the rest of MOB leases signed.
5. Psychiatry and behavioral health represented 18% of physician specialties signing MOB leases in 2024. Thirty-four percent of specialty provider MOBs were categorized as “other.”
