The occupancy rate across medical office buildings located in the US top 50 metros climbed to 91.7% in 3Q21. This was up from 91.5% in 2Q21 and 91.3% one year ago. In fact, the 91.7% observation is the highest quarterly level since 3Q18. What is driving the occupancy gains in the top 50 metros? Well, as detailed in our 3Q21 subscriber webcast (click here to view a free replay), we have been seeing lower levels of completions coupled with higher levels of absorption in 2021. Completions through the first 3 quarters in 2021 have totaled 7.8 million square feet (MSF) across the top 50. This compares to 11.0 MSF delivered during the first 3 quarters of 2020. Meanwhile, absorption has totaled 9.9 MSF during the first 3 quarters of 2021 which gives occupancy room to run!
