The Medical Office Market Has Reset
Revista has just released its most recent (Q4-2025) U.S National Transaction report for Healthcare Real Estate.
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1,403 properties traded totaling $21.5B across 75.7M SF
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MOBs dominated with 1,033 properties and $13.3B in volume
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Grand total average cap rate: 6.8%
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Annual MOB volume of $8.7B–$9.4B per quarter in 2025 — a meaningful pullback from the 2021–2022 peak of $25–30B annually
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Average price per SF nationally: $373, with New York ($478) and Phoenix ($505) commanding premiums; Houston came in at $421/SF with a 5.8% cap rate — notably the tightest cap rate of any major metro listed
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Cap rates have stabilized in the 6.5–7.3% range on a TTM basis, up significantly from the sub-5% lows of 2021–2022
Buyer/Seller Dynamics
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Investors/Private dominated buying activity (80%+ of volume in 2025)
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Remedy Medical Properties was the most active buyer (186 properties, $4.3B), followed by IRA Capital and Montecito Medical
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Welltower was the top seller ($4.1B), followed by Healthcare Realty Trust ($1.1B)
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Health systems were net sellers, continuing a long-running portfolio monetization trend
Cap Rate Trends
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On-campus MOBs: ~6.5% median; off-campus: ~6.7%
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Portfolio deals trade tighter (~6.4%) vs. single-property (~7.2%)
Data Source: Revista
FAQ: Is the current market environment favorable for new investors given the seller activity from health systems?
Absolutely. Health systems have been consistent net sellers to unlock capital for their core operations, creating a steady supply of quality assets. Private investors captured over 80% of 2025 volume, with active players like Remedy Medical Properties ($4.3B in acquisitions) leading the way. This dynamic increases liquidity and opportunities for new capital to enter through direct purchases or partnerships. The sector remains defensive with resilient fundamentals—strong occupancy and growing outpatient demand—making it appealing for long-term, income-focused portfolios compared to more volatile traditional office properties.
FAQ: Why is Houston delivering the tightest MOB cap rates (5.8%) among major U.S. metros, and is this sustainable?
A lot of this comes down to pure momentum. Houston is one the fastest population growth major metros in the country—and healthcare is the engine behind it, creating over 10,000 jobs. Between the massive expansions at TMC Helix Park and new satellite projects from MD Anderson and Methodist, the Texas Medical Center ecosystem is pushing demand well beyond its main campus. The numbers tell a clear story: even with the busiest construction pipeline in the U.S., we’re still seeing vacancy tighten to 10.9% because people are snapping up space faster than we can build it. Between a growing, aging population and the shift toward outpatient care, these are long-term wins. If you’re looking at well-located assets with solid tenants, expect that premium pricing to stick around well into 2027.
The post The Medical Office Market Has Reset appeared first on Coy Davidson – The Tenant Advisor.
Source: https://coydavidson.com/the-medical-office-market-has-reset/
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