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Off-Campus Medical Office Dem and Rising; Mergers and Acquisitions Reshaping Healthcare Systems and Care Delivery

 

Robust demographics, rising healthcare spending power medical office demand. Medical office properties will
sustain their positive outlook this year as strong employment and aging demographics align with favorable sector
trends to boost performance. Baby boomers remain a key driver of overall demand for medical services, while a
steady rise in medical school enrollment over the past decade will meet staffing needs and support demand for
medical office space nationwide. Ambulatory care services, including physicians and general practitioners, have led
healthcare employment gains, reiterating the need for both on-campus and off-campus facilities. Though
development had been on the rise over the past few years, annual completions remain well below the peak of the
last cycle and deliveries will edge lower this year. The alignment of slower supply growth and rising demand will
tighten medical office vacancy to the lowest level in over a decade.
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