New space, no problem: U.S. medical deliveries continue to lease up quickly
- Since Q1 2022, quarterly absorption has averaged 107.2% of new medical deliveries (3.14 million square feet (msf) absorbed vs. 2.93 msf delivered), demonstrating the market’s ability to lease new space as soon as it becomes available.
- Tenant demand has met or exceeded deliveries in 11 of the past 15 quarters, outpacing deliveries by 8.2% in the third quarter of 2025, reinforcing that tenant demand remains strong even as development continues.
- Between Q3 2020 and Q3 2025, demand has outpaced supply by an average of 3.82%, signaling efficient leasing velocity and cementing healthcare as one of the most stable, well-balanced asset classes in commercial real estate.
December 4, 2025
