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. The past ten years have shown a smooth and consistent uptrend, with an average increase of around 50 cents per year. One thing to note is that same-store expense growth has been elevated over the past year, and it will be important to keep an eye on how it affects NOI going forward.
Subscribers can download the full Industry Fundamentals Report at the following link: https://data.revistamed.com/Pages/NationalReports
