Vital Signs

Why Medical Outpatient Buildings Continue to Attract Attention

Medical outpatient buildings (MOBs) are becoming an increasingly important segment of the U.S. healthcare real estate market as providers, investors and health systems adapt to changing patient expectations and rising healthcare demand. Across the U.S., care delivery is continuing to shift away from traditional hospital settings toward outpatient and community-based facilities that offer greater convenience, lower costs and improved accessibility for patients.

Several long-term forces are driving this transition. An aging population, rising rates of chronic disease and accelerating healthcare spending are increasing demand for outpatient services across specialties including endocrinology, cardiology, physical therapy and behavioral health. At the same time, many health systems are expanding ambulatory strategies and investing in facilities closer to where patients live.

For commercial real estate investors, the sector’s appeal continues to strengthen. Medical outpatient buildings have demonstrated resilient occupancy levels, durable income characteristics and strong long-term performance relative to many traditional property sectors. Yet new development remains constrained by rising construction costs and limited supply, creating continued pressure on rents and occupancy across many markets.

The 2026 U.S. Medical Outpatient Building Update explores the trends reshaping the sector, including leasing fundamentals, construction activity, demographic demand drivers and capital markets performance across the nation’s leading healthcare real estate markets.

Topics covered in the report: