Metro Highlight – Houston
With a burgeoning population, no certificate of need requirement and an expanse of space in which to build – you might be led to believe that a Texas metro like Houston …
Leasing/Property Management
Metro Highlight – Minneapolis
Minneapolis is not even in the top ten metros when it comes to total number of medical properties in a market. In fact, it’s ranked at 13. Yet this unassuming …
Metro Highlight – Phoenix
Phoenix is an investor favorite for sure. While nationwide roughly 65% of medical office space is user owned, in Phoenix only 30% is user owned. A whopping 70% of inventory …
Metro Highlight: San Francisco
In past metro highlights we’ve talked about growth markets with lots of construction activity, interesting markets with innovative health systems, metros with the highest sales volume, but what about the …
MOB Construction Pipeline Grows throughout 2020
Despite the challenges this year with COVID-19, medical office projects continue to break ground. Openings are not keeping pace, resulting in an in-progress pipeline that continue to grow. As of …
MOB Construction Starts Strong Despite Rising Costs
We\’ve all been hearing about the significant uptick in materials and labor costs associated with construction over the last number of months, particularly lumber which has been the focus of …
MOB Construction Update
MOB construction has been slower than usual in 2025. Less projects are breaking ground than are completing, so the pipeline has been shrinking. In recent times, inventory has typically grown around 1.5% annually. Over the past year MOB inventory has grown . . .
MOB Fundamentals Holding Steady Through the Pandemic
The Medical Office Building (MOB) sector has shown its mettle through previous economic challenges. But with the onset of the Covid-19 pandemic and ensuing slowdown of elective surgeries and office …
MOB Fundamentals Remain Steady
Development and acquisition activity is currently suppressed in the medical office sector. However, this does not reflect a wavering in the underlying performance of medical assets. The graph below is from our 3Q23 Industry Fundamentals Report, which tracks a group of large medical office portfolios containing approximately 150 million square feet. It shows the average NOI per occupied square foot, which has continued to tick up, now at a level of $23.20.
MOB Occupancy at Cyclical High Point while Office Continues Struggle
The office market continues to struggle with the volume of employees working from home or on a hybrid schedule coming out of the pandemic. Although historically viewed as a subsector of office, the dynamics of the users of medical office space are completely different.
MOB Occupancy Rate Hovering at Cyclical High
The Medical Outpatient Building or Medical Office Building sector (both MOB) is at a cyclical high in 3Q25.
MOB Occupancy Trends Across the Country
If we take a look at the overall occupancy trends for the top 50 metros, we can see that a shallow U-shape has formed over the past few years. While this pattern shows a modest dip followed by a recovery, this may not be the story for individual metros.
MOB Project Delays Temper Deliveries, Starts Steady
MOB project completions continue to slow in 2Q, down to 17 million square feet in annual deliveries. This is the lowest pace of deliveries in the last 6 years and represents a 32% decrease from the annual run rate of 25.1 million SF in deliveries in 1Q2020- just before the onset of COVID and all the related shutdowns, restrictions and labor shortages.
MOB Rent Growth Acceleration Slows in 2Q
Historically, Medical Office Building year-over-year rent growth has been right around the 2% mark. During the pandemic shutdowns there was a meaningful slowdown, but it rebounded shortly after as businesses …
MOB Rents by Region
Which regions have the highest rents? According to the following graph, which covers the largest metro areas across the U.S., the Pacific region is the outlier. In 2Q24, the Pacific had asking rents 29% higher . . .
MOB Tenant Retention Rates Set Recent Highs in 4Q19
Industry participants often point to the “stickiness” of medical office leases. This stickiness is measured in tenant retention rates. Generally, over the past 11 years, average MOB retention rates have …
MOB Transaction Volume Continues to Cool, Private Investors Still Lead Acquirers
2019 MOB deal volume continues the cooling trend after coming off historical highs in 2017. Preliminary data shows 375 MOBs traded in the first half of 2019 representing about $4.4 …
MOBs Can Weather a Storm
In recent weeks we’ve seen significant volatility in the stock market along with increasing fears of a recession. After all, this is now the longest market expansion in history. It …