- The average U.S. medical outpatient building (MOB) inventory is decades old, with no region averaging a class A asset younger than 17 years. Class B properties are even older, highlighting the aging nature of outpatient healthcare real estate across the country.
- By a wide margin, the Northeast is home to the oldest class A and B MOB inventory, with average build dates of 1997 and 1975, respectively. The Southwest has the youngest inventory, though average build dates still date back to 2009 for class A and 1996 for class B properties.
- Despite growing healthcare demand across every region, new MOB space remains hard to come by due to rising construction costs, compressing health system margins, and a borrowing environment that is far more challenging than in recent years.
- For investors already active in the sector, the threat of new supply to existing inventory is often less concerning than the costs associated with maintaining and operating older, often less efficient, medical outpatient assets.
The clock is ticking on U.S. medical outpatient building inventory
