In the wake of record inflation, landlords have had increasing pressure to raise rents at a faster pace. Historically, MOB annual rent growth has been around the 2% mark, and that rate slowed somewhat in the beginning of the pandemic related to the initial shutdowns. Since that time, the pace has picked up and began accelerating in 2022. In 4Q, year-over-year (YoY) same-store rent growth climbed to 2.5% across the top 50 metro areas. Individual markets, however, are across the spectrum. Metros with more demand and less available space are better able to pass along higher rents. Just in the largest 25 metros (listed in the below chart), 4Q rent growth ranges from 1% in St. Louis, where absorption of space has been a little slower, to 4.9% in Miami where demand has been significantly outpacing new supply over the last number of quarters. Find out more about this trend and more at our annual MREIF event next week in Bonita Springs, FL!
