The New York (NYC) metro medical office market (MOB), which saw its occupancy rate fall as a result of the Covid-19 outbreak, is now on the rebound. NYC’s MOB market, prior to the pandemic was extremely tight and hovered around 94%. As the pandemic ensued, much of commercial real estate in NYC was slow to recover. MOBs in the market were impacted as absorption waned and the occupancy rate troughed around 93.3% in 2022. After a slow recovery in 2023, the occupancy rate has been on the upswing in NYC. It currently sits at 93.9% which is near its pre pandemic range of 94%+. NYC has also seen over 1.5 million square feet of absorption during the past year, making it the #1 ranked market (of the top 125). NYC is also #1 in completions with 1.279MSF of MOB completions during the past year.
