Medical Office Buildings: The Quiet Powerhouse in Commercial Real Estate

While traditional offices are still figuring out what “hybrid” really means, medical office buildings (MOBs) are quietly locking in tenants, attracting investors, and reshaping local communities. Healthcare isn’t optional and telehealth visits aren’t always practical making this asset class one of the most steadiest in 2025.

Aging Population = Built-In Demand

By 2030, all baby boomers will be 65 or older. That means 1 in 5 U.S. residents will be at retirement age and driving more demand for outpatient care and specialized medical services. 

Outpatient Shift is Real

More procedures are moving from hospitals to outpatient centers. The Centers for Medicare & Medicaid Services (CMS) projects outpatient spending to nearly double over the next decade, topping $1.9 trillion by 2031. 

Occupancy Levels Hold Strong

Medical tenants traditionally sign long-term leases and invest heavily in space customization like imaging suites, surgical rooms, onsite labs, and specialized HVAC. That commitment to the space helps MOBs retain tenants and keeps occupancy rates higher than lots of other commercial property types. According to a 2024 industry review, MOBs average above 92.8% occupancy nationally. 

Efficiency Matters

Government energy data shows outpatient healthcare buildings consume significantly less energy per square foot than full hospitals, imagine 82 MBtu/SF vs. 193 MBtu/SF. With reduced energy consumption, MOBs become a more ecofriendly option for growing healthcare needs. It also enables MOBs to occupy buildings that historically might have had retail or traditional office uses, giving consumers more choices closer to home.

Investment Spotlight

Despite tighter lending conditions overall, medical real estate has remained resilient. Reports from industry analysts show transaction volumes dipped in 2024, but pricing per square foot climbed as investors favored stability over risk.

Eve’s Hot Take

Medical office buildings are more in demand than ever as investors and providers look to gain ground in the changing market. Whether you are an investor looking for long-term stability or a provider hoping to invest in your business, buying a MOB could be the right move for you. Eve agents understand the demand drivers, lending appetite, and needs of MOBs.

Curious how MOBs can fit into your investment strategy? Let’s talk.