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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

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