Rising rents and wages: The cost of a thriving U.S. medical occupier
Medical outpatient facilities have maintained a tight and increasing 92.8% occupancy since April 2024, which has undoubtably caused leasing costs for these buildings to soar. The average annual lease costs for a 5,000-square-foot (sf) space (average NNN rate multiplied by 5,000) has increased by a substantial 11.9% since 2020.
Staffing wages have also increased considerably, with weekly physician assistant wages increasing 22.1% and registered nurse wages increasing 19.4% since 2020.
The delivery of additional medical outpatient space may temporarily reduce leasing costs, but due to the high ongoing demand for this kind of space, uncertainty remains.
