As the U.S. healthcare real estate market looks ahead to 2025, demand will likely rise due to several key factors, including an aging population, increasing healthcare expenditures, and technological advancements. Medical Outpatient Buildings (MOBs) are in a prime position to benefit from these changes. A decline in inflation and expected cuts in interest rates are also likely to boost leasing and sales, leading to additional MOB space absorption.
Key Trends:
Aging Population: By 2030, people aged 65 and older will make up 20% of the U.S. population, resulting in a 31% increase in outpatient healthcare spending, reaching nearly $2 trillion.
Demand for Convenience: As the senior population grows and consumers seek healthcare facilities closer to home, vacancy rates for MOBs dropped in 2024, leading to a rise in rental prices.
Labor Shortages: Despite healthcare employment growing faster than the national average, labor shortages continue to pose challenges, leading to a greater reliance on new technologies and AI.
Focus on Patient Care: Since 2019, healthcare systems have accounted for 31% of all healthcare-related leasing, with a shift toward securing space dedicated to patient services.
Investment Growth: MOB investments surged by 38% year-over-year, reaching $2.5 billion in Q2 2024, with cap rates falling for the first time since mid-2022.
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