The U.S. Medical Office (MOB) sector posted a solid performance in 2020. Average pricing and rents increased, and cap rates tightened. MOB vacancy levels are significantly below those for the overall office sector. Net absorption outpaced new supply across the 50 leading MOB markets as a whole. Sales volumes held up relatively well when compared to the broader decline in CRE investment activity.

Key performance metrics for the MOB sector in 2020 are summarized below.

Rents & Vacancy

Supply & Demand

Capital Markets