When Tech Tenants Leave—Medical Real Estate Fills the Gap

The post-pandemic tech boom left many urban markets flooded with flashy, oversized office leases.

But 2025 has shown us something new: as tech contracts, healthcare is expanding. And it’s reshaping commercial real estate in a big way.

From San Francisco to Boston, underutilized tech campuses and Class A office space are being repurposed for medical use—particularly outpatient and specialty care.

Here’s why this is happening:

• Tech layoffs and hybrid work left top-tier office space empty or downsized.

• Health systems and private operators are hungry for high-visibility, accessible locations.

• Investors are realizing healthcare tenants are more recession-resistant, credit-worthy, and less volatile than startups.

That’s led to a steady uptick in medical office conversions—often with minimal retrofitting required.

We’re seeing:

✔️ Behavioral health clinics opening in former coworking spaces

✔️ Ambulatory surgery centers replacing old sales floors

✔️ Specialty practices revitalizing entire mid-rise buildings

But it’s not just about space. It’s about strategy.

If you’re sitting on a vacant or underperforming office property—or leasing to a tech company on thin ice—this is the moment to reassess your asset’s future.

📅 Want to discuss a conversion or repositioning? Book a quick consult.

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The vacancy problem isn’t going away—but the solution might just have a stethoscope.