2023 Healthcare Marketplace

by | 24 March 2023

Medical Office Fundamentals Remain Solid, but Cost Concerns Weigh on the Healthcare Industry

The medical office sector continues to perform well, setting record highs for asking rents and sales volume in 2022. Demand is outpacing supply, vacancy remains tight, and development is picking up, reflecting confidence in the sector. This is encouraging given the challenges of the healthcare industry, but there are signs of softening as well, with cap rates showing differing trends between single asset deals and portfolio transactions. Average pricing increased compared to 2021, but eased in the second half of 2022.

We have identified several important changes in the healthcare industry over the year ahead and explore each of these issues in detail here, after we review how healthcare real estate, and medical office properties in particular, performed.

Download the report.