CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
mob 2025-article hero banner.jpg mob 2025-mobile hero banner.jpg

MOB Capital Markets Midyear 2025 Update

Unlocking Opportunities Amid Shifting Market Dynamics

Medical outpatient building (MOB) investments have encountered headwinds in the first half of 2025, but several positive trends signal growth opportunities for the remainder of the year. Pricing has shown resilience, cap rates remain competitive, and key sectors within MOB are poised for a rebound as capital markets stabilize. Our midyear update dives into the latest insights, offering actionable strategies for investors navigating a challenging yet promising landscape.

 
key takeaways: 
  • Market Activity: MOB transaction volume totaled $3.5 billion in the first half of 2025, reflecting a 19% YOY decrease due to economic uncertainty and higher interest rates. A slight recovery in Q2 provides a promising outlook.
  • Pricing Trends: Average pricing per square foot increased 9% YOY, with off-campus assets leading the way at $351 psf—16% higher than on-campus assets.  
  • Cap Rates: Transaction cap rates have stabilized around the 7% range, with portfolio deals seeing compression that reintroduces a "portfolio premium."  
  • Investor Interest: Strong income returns and long-term outperformance continue to position MOB as a top choice for investors in alternative real estate.  
  • Opportunities Ahead: Stabilizing pricing, anticipated interest rate cuts, and robust fundamentals in healthcare real estate are setting the stage for increased deal activity in the second half of 2025.

mob 2025-web thumbnail.jpg

Download Report

Author

  • Sandy Romero
    Head of Life Sciences & Healthcare Insights, Research Manager

Transaction activity totaled $3.5 billion through the first half of 2025, a 19% drop year-over-year (YOY), when excluding REIT mergers.
MOB transaction cap rates remained above the five-year average during the first half of 2025. Based on Cushman & Wakefield’s adjusted cap rate data, the Q2 2025 cap rate of 6.9% was 10 basis points (bps) lower than the previous quarter. On a YOY basis, the adjusted cap rate expanded 30 bps over Q2 2024.

Dive into the full report to explore the trends shaping MOB investment this year.

WANT MORE INFORMATION ABOUT THE HEALTHCARE SECTOR?
Get the latest in Cushman & Wakefield Healthcare research and commentary delivered to your inbox.
Subscribe

Healthcare Capital Markets Team

Gino Lollio Chicago Managing Director
Gino Lollio

Executive Director
Chicago, United States

Download VCard

Travis Ives, San Diego, Executive Director
Travis Ives

Executive Director
San Diego, United States

Download VCard

tyler morss
Tyler Morss

Broker
New York, United States

Download VCard

Contact us

Related Insights

mob 2025-web card.jpg
Research • Investment / Capital Markets

MOB Capital Markets Midyear Update

Medical outpatient building (MOB) investments have encountered headwinds in the first half of 2025, but several positive trends signal growth opportunities for the remainder of the year.
Sandy Romero • 8/19/2025
12.2024-healthcare-update_web-card.jpg
Research

Vital Signs 2025

Healthcare Sector Outlook
Sandy Romero • 1/22/2025
Alternative Assets
Research • Investment / Capital Markets

Unlocking Alternatives: Investing Beyond the Major CRE Asset Types

Investing beyond the major CRE asset types.
Abby Corbett • 11/15/2023

Ready to talk?

Our professionals are ready to provide further details on this and many other topics.
Contact Us

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Cookie preferences
Agree All
Reject All
SAVE SETTINGS
Essential
Non Essential
Marketing