The Midyear 2021 Medical Office Outlook :
Long-Standing and Recovery-Driven Trends Augment Health Services Demand
Medical Office Outlook Affects Buyer Count
Strong fundamentals prior to the COVID-19 pandemic and the relative resiliency of medical office properties during the economic downturn have attracted a broader range of investors to the sector. An expected rise in elective procedures and routine appointments may increase the number of buyers.
Investor Confidence Turns Into Record Trading
Medical office closings accounted for nearly 30 percent of all U.S. office sales. Buyer activity notably strengthened during the October 2020 through March 2021 span as the number of closings represented the strongest six-month stretch for deal flow in more than 20 years.
Sunbelt Markets Shine
Major metros in the Southwest, Southeast and California that are recording strong in-migration or feature large cohorts of retirees are positioned to drive medical office sales activity in 2021. Moving forward, tenant quality and income durability will be key to pricing in these locales.