For healthcare tenants in costal markets such as Los Angeles, San Jose or San Francisco, it is understood that higher rent levels come with the territory. Historically hard to build, high demand markets on the coasts have allowed rent levels to build over the years. In fact, the 2 most expensive rent markets (of the top 50 metros) for MOBs in 3Q23 are San Jose ($45.81 avg NNN rent) and San Francisco ($41.00 avg NNN rent).
But while markets on the coasts may boast higher rents, it is other markets that are seeing faster rent growth in 3Q23. Buffalo, NY leads the pack of the top 50 metros for MOB rent growth. At 9.2% YOY, it also has a NNN rent of $19.98/SF. Miami, (ok a coastal market!), has been seeing outsized rent growth for over a year now and is currently at 5.1% with a NNN rent of $27.34/SF.
See the MAP for where your market ranks and we look forward to bringing you more on this topic.
