Why Medical Office Demand Remains Strong Despite Office Sector Headwinds

There’s been a lot of noise about the decline of traditional office space—but medical office buildings (MOBs) are telling a completely different story. While companies shrink their footprints and shift to remote work, healthcare providers are still expanding—and they need space to do it.

The demand for in-person care hasn’t gone away. Patients still need imaging, lab work, physical exams, outpatient procedures, and follow-up visits that can’t be done virtually. Medical offices remain essential infrastructure, especially in growing suburban markets where large health systems and private providers are building out networks to meet patient demand.

Medical offices also offer a different kind of stability. Tenants tend to sign long-term leases—often 10 years or more—because medical build-outs are costly and relocating isn’t easy. Investors love this. It means predictable income, lower turnover, and fewer headaches compared to traditional office tenants.

Plus, medical office demand is being fueled by broader healthcare trends—aging populations, increased behavioral health needs, and more outpatient care. And because they’re often located near hospitals or in established retail corridors, well-positioned MOBs continue to attract both tenants and capital.

While many landlords are struggling to fill traditional office space, those with healthcare-focused properties are seeing strong leasing activity, minimal vacancies, and rising rents in the right markets. It’s a clear reminder that not all offices are created equal.

If you’re looking to invest in or appraise a medical office property, let’s connect.

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