A growing shift toward outpatient care has led to an increased demand for medical office buildings, according to a new report from real estate company JLL.
JLL released its U.S. Medical Outpatient Building Perspective report April 11 detailing trends within medical real estate for 2024.
Here are six notes to know from the report:
1. Off-campus medical office buildings saw a 1.9% increase in occupancy from 2019 to 2023.
2. Construction costs are expected to increase 2- 4% in 2024.
3. Several cities in the southern region are seeing growth in the healthcare industry due to high population and employment growth.
4. Although MOB transaction activity has been slow recently, it could increase later this year as inflation stabilizes and investor interest continues.
5. Outpatient sites that are expected to see the most rapid growth include those for ambulatory surgery, endoscopy and hospital outpatient departments.
6. Rent for medical office buildings saw a 2.9% year-over-year increase during the third quarter of 2023. MOB rent growth currently remains below inflation rates.