Steady growth in top 100 U.S. metros fuels medical office building boom

Within the top 100 American metros, the delivery of medical office buildings (MOBs) is not uncommon. Since the second quarter of 2021, these areas have seen an average quarterly addition of 0.3% to the total MOB inventory, and occupancy has increased 140 basis points to nearly 93%.
During this timeframe, despite the new space being delivered, MOB occupancy kept increasing because strong demand for these spaces has absorbed move-outs and new vacancies.
If demand continues to grow, new MOBs across the top 100 metros are poised for positive leasing momentum into 2025.

October 2, 2024