Medical outpatient buildings have moved from the margins to the centre of institutional real estate strategy. Once seen as a niche play within the office sector, they are now firmly positioned as core holdings for investors focused on long-term income and stability.
Occupancy in the top 125 U.S. markets reached 93.5% by mid-2025, with over 15.9 million square feet absorbed in the last year alone. In 42 of those markets, occupancy is now above 95%. Rental growth is accelerating in these tighter areas, with annual increases above 2%.
The tenants themselves add another layer of strength. MOBs are often anchored by hospitals, healthcare systems and large physician networks. These are essential service providers with durable demand and strong financials. They do not leave buildings because of market cycles or remote work trends. Their operations rely on physical proximity to patients and continuity of care.
By 2030, one in five Americans will be over 65. That ageing population is already driving demand for outpatient services such as cardiology, oncology and primary care. At the same time, younger patients are pushing for more convenience, digital integration and community-based access. MOBs are directly aligned with both needs.
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.
