In the chart below we are comparing MOB cap rates to the 10-year treasury yield. So far in 2026 cap rates for medical office transactions have been quite stable. From the end of 2025, through the first half of 2026, the average was flat at 6.7%. The 3Q26 data has not been published yet, but preliminary numbers indicate a marginal expansion. On a price per square foot basis, values have trended up in 2026, with an average of $387 in 2Q vs. $370 to end 2025. The spread between the 10-year and cap rates is 223 bps as of 2Q26, the lowest it’s been in recent years. That spread is based off the 2Q26 average 10yr of 4.42. Given that the FED recently hiked rates, and in real time the 10yr is over 5.2, if the spread is going to maintain above 200 bps, cap rates have room for moderate expansion going into the last quarter of the year.
