On February 3, 2026, Revista kicked off its Medical Real Estate Investment Forum in Palos Verdes, California. The two-day event covered a range of topics, from current economic pressures and evolving hospital system strategic planning to investor activity and the latest healthcare real estate fundamentals. Here are some key takeaways and observations

Market Fundamentals

• Occupancy in outpatient healthcare real estate remains extremely strong, exceeding 92% in many major markets.
• Development starts are increasing again after several years of slowdown, while completions remain temporarily low due to earlier declines in activity.
• Behavioral health and inpatient rehab facilities are experiencing significant growth driven by demographic trends and improved reimbursement.
• Tenant rent elasticity varies significantly by specialty, with high‑acuity providers willing to pay more for premium space.

Ambulatory Trends

• Flexible building design is increasingly essential for health‑system strategy, especially for multi‑specialty outpatient consolidation.
• Outpatient growth remains a strategic priority, but inpatient replacement and modernization still command major investment.
• Practice acquisition remains important, especially to stabilize markets post‑merger and align physicians with clinical protocols.
• Ambulatory strategy must reflect local market realities, including population shifts, competitive dynamics, and reimbursement patterns.

Medical Outpatient Investment Market

• Medical office continues to outperform traditional CRE on a risk‑adjusted basis, offering steady returns and lower volatility.
• Investor appetite is strengthening, with more capital returning to healthcare real estate and portfolio deals gaining momentum.
• Private equity activity is rising, with nearly 100 new buyers entering the market in 2025, up from the prior year.
• Payer‑mix sensitivity and regulatory uncertainty are becoming increasingly important underwriting considerations.
• Lender appetite for medical office and healthcare real estate is strong, with financing activity up significantly entering 2026.