« Press Releases
  

U.S. Medical Office Buildings: A Cure for Market Volatility


CBRE’s first-ever report on the U.S. medical-office market concludes that a combination of demographic trends, technological advances and an emphasis on cost-efficiency will sustain demand for health care services well into the future. Key findings of our report include:
  • The 65+ population, which currently accounts for the highest per-capita health care spending by far, will nearly double by 2055.
     
  • Cost containment is driving health care industry consolidation and fueling demand for less expensive delivery settings, such as medical office buildings and urgent-care facilities, as well as new technologies that can produce better patient outcomes at lower costs.
     
  • Absorption of medical office space has outpaced new supply for the past seven years, lowering the segment’s national vacancy rate to 8% as of Q1 2017.
     
  • Rising investor confidence in medical office space has resulted in increased transaction volume in the segment, which reached nearly $10 billion for the year ending Q1 2017 and pushed cap rates to a record-low average of 6.8%.
To learn more about how the medical-office market is becoming increasingly appealing to investors, please download the full report, or for more information contact CBRE’s Healthcare Real Estate Services or CBRE’s U.S. Healthcare Capital Markets Group.


August 28, 2017


Topic Area: Press Release

Recent Posts

How Efficiency Checklists Help Hospitals Save Energy, Water and Money

Keith Edgerton explains how a simple, systematic tool can help healthcare facilities identify savings, support sustainability goals and reinvest in long-term decarbonization.

Designing with Heart: Seen Health Center Blends Cultural Warmth and Clinical Care

Case study: The Alhambra-based facility uses Wilsonart Woodgrains to create a space where comfort, tradition and durability come together for an elevated senior care experience.

Rutgers Health and University Hospital Breaks Ground on Campus Expansion

The groundbreaking follows the long-awaited demolition of administrative offices built in the 1970s.

What to Consider When Modernizing Healthcare Facilities

While there has been a call to preserve old buildings, healthcare facilities need to weigh the options of patient care.

Corewell Health Beaumont Troy Hospital to Build New Tower

The tower is expected to be completed in 2030.

 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.