canvas togler
Back to all news

What’s Behind Medical Office Buildings’ Strong Trajectory



Healthcare real estate, specifically medical office buildings, are poised for further success.

Medical office buildings comprise approximately 10% percent of the US office sector. These buildings are typically about 40,000 square feet and range from small physician offices to large healthcare systems. Investors are attracted to this asset class due to its stability and positive forecasts for a strong performance. On the rise for the last four years, medical office sales totaled $10.4 billion in 2018.

Healthcare spending reached almost $3.5 trillion annually in 2017. The US Centers for Medicare & Medicaid Services anticipates national healthcare expenditures to grow to $5.7 trillion by 2026.

GlobeSt.com

A Morristown NJ Medical Building (from the KDA Project Portfolio)