Medical office real estate is proving to be one of the more resilient property types as wider commercial real estate markets face pressure. While deal activity has slowed across the board due to interest rate volatility and tighter capital availability, investor interest in medical office assets remains steady, driven by the sector’s strong fundamentals and consistent tenant demand.
Unlike traditional office properties, which continue to struggle with hybrid work and elevated vacancy, medical office buildings are closely tied to in-person healthcare delivery. Most medical services still require physical visits, keeping demand rooted in bricks-and-mortar facilities.
The leasing profile in this sector tends to be more predictable. Healthcare providers often invest heavily in their fit-outs and are reluctant to relocate, which supports long-term tenancy. This helps reduce turnover risk and provides investors with reliable income visibility. Rent collections have remained strong, even through periods of economic disruption, adding to the sector’s appeal as a defensive asset class.
Physicians Capital are the only physicians-owned private real estate investment firm that allows doctors to reclaim ownership, generate passive income and build long-term wealth.
