Those involved in MOB construction have felt the challenges with getting projects started the past several years. First, the Covid-19 pandemic created supply shortages and then the onset of inflation caused construction costs to rise significantly. The result has been a decline in overall construction activity, and in particular, construction starts. Quarterly starts, which were averaging 5.9 million square feet (MSF) from 2018 through 2022, fell to an average of 4.3 MSF for the 2 years ending 2024. Construction starts have appeared to hit a bottom in the 4th quarter of 2024 with just 3.2 MSF starting. Starts have risen, albeit slightly, for the past 3 quarters. In 2Q25, starts have risen dramatically registering 5.8 MSF. This is the highest quarterly starts value in 3 years when 6.8 MSF started in 2Q22. Is this the start of a new upswing in MOB construction? Time will tell but tune into RevistaMed.com to find out!
