Health Space Insider

The fundamentals have never been better in medical outpatient properties.

8 out of the 10 fastest-growing healthcare service lines are outpatient

Transaction News: Fleming Island Medical Plaza sells for $24.12M Asset: Fleming Island Medical Plaza (two-building medical office complex) 77K SF Location: Fleming Island, FL Seller: Lincoln Property Co. (Dallas) Buyer: SG Property Services (Atlanta)

The MOB Supply-Demand Gap Right now, about 93% of medical outpatient space across the country is already filled. Despite this, new construction has slowed to a crawl. This is hitting fast-growing areas like Houston and Orlando the hardest. Rising Demand: An aging population and a preference for convenient, local clinics over massive hospitals are driving more people to outpatient centers. Stalled Supply: High labor costs and expensive materials make it risky for private developers to start new projects unless they already have a major tenant signed on the dotted line.

Hospitals are entering 2026 under pressure. • Bad debt + charity care up 8% • Patient volumes down (ER visits -5%) • Expenses rising across labor, supplies, drugs With more uninsured patients and weaker payer mix, margins are tightening fast. healthcaredive.com/news/hospital-…

Houston’s healthcare boom continues! Just one year after its $685M opening, Houston Methodist Cypress is already launching a $104M expansion. The 9th hospital in the Houston Methodist system is scaling fast to meet community demand. 🔹80+ New Beds (64 Med-Surg, 16 ICU) 🔹6 New Operating Rooms 🔹Endoscopy & Inpatient Dialysis suites 🔹145 New Jobs

@CoyDavidsonCRE Renewals are where MOB landlords are quietly winning right now.

Constrained MOB supply keeps occupancy high and rents growing. 5 Things to Know: 1⃣ MOB occupancy hit a record 92.7% in 2025, up 30 basis points from the end of 2024. Demand is outpacing every new square foot being delivered to the market right now. 2⃣ MOB construction starts fell to 1.1% of total inventory in Q4 2025. 3⃣New construction rents (~$40/s.f.) are nearly double average in-place rents (mid-$20s). 4⃣ Lease escalations in MOBs are shifting to 3% annual bumps or CPI-tied provisions. 5⃣ Health systems represent 46% of all MOB leases.

A new federal bill introduced would cut off Medicare funding to hospitals and nursing homes owned by private equity firms. The legislation, called the Taking Back Our Hospitals Act, targets 400+ healthcare facilities nationwide.

MOB Transaction volume hit $10.6B in 2025, boosted by Welltower's $7.2B portfolio sale. Institutional ownership is at decade highs, cap rates compressed 60 bps YOY in Q4

Transaction News: After being built exclusively for a local health system, the County of Santa Clara has taken a new medical office building off of Harrison Street Asset Management's hands for $340 million. globest.com/2026/03/24/san…

Transaction News: Elliott Bay Capital Trust acquired a 22,900 SF outpatient orthopedic facility in Harrisburg, PA. The property is 100% leased to UPMC under a net lease structure. Built in 2015 as a purpose-built orthopedic center.

🏥 Medical Office Update: Rent growth is settling back to historical norms (1.9% YoY) as the inflation wave passes. Individual metros still vary widely. Despite the normalization, occupancy remains at a healthy 92.5%. High construction costs are keeping supply in check.

The Life Sciences Market Everyone Is Still Underrating #Houston is building the infrastructure that attracts the next wave of life sciences investment.

🏥 Top Markets for New MOB Construction 1⃣ Houston 2⃣ Memphis 3⃣ Kansas City 4⃣ Los Angeles 5⃣ El Paso & Washington DC

CON laws quietly shape healthcare real estate. In CON states, growth isn’t market-driven... it's approval-driven.

ASCs are quickly becoming the cornerstone of modern healthcare delivery. 📈 ASCs are projected to see a 9% increase in procedure volume between 2023 and 2028. Cost efficiency ✓ Cutting-edge technology ✓ Lower capital intensity ✓ Strong consumer preference ✓

Most people know Houston as the Energy Capital of the world, but the Texas Medical Center (TMC) is a powerhouse in its own right. ✅ World’s largest medical center. ✅ $25 Billion annual regional economic impact. ✅ The primary engine behind the Healthcare RE market.

@CoyDavidsonCRE x.com/DertBroker/sta…

Medical office fit-out costs have hit a new peak. It’s not just inflation. As high-acuity care moves outpatient, the MEP and tech requirements are skyrocketing. globest.com/2026/02/13/med…