The Medical Office Sector has typically averaged 2 to 3 percent year-to-year rent growth. In recent years, this level of growth has often trailed CPI inflation. As a result, investors often target medical office (or outpatient) buildings (MOBs) that have a likelihood for higher year to year rent growth. These targets will likely include markets where higher rent growth is forecasted.
Below is a table of markets that have experienced the largest levels of growth in face rents for MOBs during the past several years. In Orlando, face rents for MOBs have risen 31.1% from $21.36 in 2Q20 to $28.00 in 1Q26. Orlando is the leading market within the top 50 metros. The top 3 markets are all Florida markets while 7 of the top 10 markets are in the southeast or mid-Atlantic region. Base or face rents have risen dramatically in these markets. The 50th ranked market, interestingly, is San Francisco where rents have trended relatively flat during the past few years. At $40.03, San Francisco has one of the highest base rents within the largest 50 metro areas.
Metro Areas Ranked by Greatest Growth in Base Rents (Top 50 Metros, 2Q20 to 1Q26)
