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U.S. healthcare market report PDF Free Download

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Page 1 U.S. healthcare market report | H1 2025
U.S. healthcare
market report
H1 2025
Page 2 U.S. healthcare market report | H1 2025
Hospital and health system operating margins
remained steady in May, with health systems
posting a median year-to-date (YTD) margin of
1.1%, up from 0.9% in March.
At the same time, the median investment per
physician full-time equivalent (FTE) reached
$332,512 in May, marking a 4.7% increase from
2024 and a 19.2% rise compared to 2023. Total
expenses per physician FTE rose 7.6% year over
year to $1.1 million, outpacing revenue growth
of 5.6% and productivity gains of 4.5%, adding
further strain on healthcare organizations’
capacity to invest in real estate expansion.
Despite high inflation, and strong demand
from medical users, MOB investors have
experienced a decline in average deal prices.
This is due to rising interest rates, which have
forced owners of expensive core and core plus
medical outpatient buildings with strong credit
tenants and long weighted average lease
terms to hold their properties and wait for cap
rates to return to levels seen in 2021.
This decline has not impacted medical user
demand though, which is high enough to allow
owners to increase rental rates each quarter
for the past five years.
From May 2023 to May 2025, job postings in
the healthcare sector have increased by a
dramatic 37.5%, as medical providers seek
more staff than in recent years. This metric
has risen by over 137% from May 2020 to May
2025, as healthcare hiring has increased in the
post-COVID era.
This increase is likely to level out or decrease
as the supply of workers rises and
opportunities become more competitive to fill
medical roles across the U.S.
U.S. health systems’ operating
margins see modest increase increase in job postings
37.5%-20.2%1.1%
U.S. medical outpatient building market trends
Source: Avison Young Market Intelligence, CoStar,
Monthly Healthcare Financial Benchmarks – Strata, Revistamed
change in medical office
building (MOB) pricing
Page 3 U.S. healthcare market report | H1 2025
2.3%
2.1%
1.1%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Hospital and health system
operating margins remained
stable in May, with health
systems reporting a median
YTD margin of 1.1%, up from
0.9% in March.
Hospitals saw a 0.6% increase
in operating margins year over
year (YoY), led by a 3.6% rise in
the South and a 2.6% gain for
hospitals with 300 to 499 beds,
while the largest hospitals (over
500 beds) and smallest
hospitals (0 to 25 beds)
experienced declines of 2.6%
and 3.3%, respectively.
Note: Representative office locations. Weekdays only.
Source: Monthly Healthcare Financial Benchmarks, Strata, Revistamed
Median health system operating margins
Nationally, YTD
Page 4 U.S. healthcare market report | H1 2025
$340
$271
$23.41
$25.99
$22
$23
$23
$24
$24
$25
$25
$26
$26
$27
$200
$220
$240
$260
$280
$300
$320
$340
$360
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Average sale price psf Average NNN rental rate
Source: Avison Young Market Intelligence, CoStar, Revistamed
Sales prices decline and rental rates increase
Psf Psf
Since Q4 2021, the average
price per square foot (psf) for
medical outpatient building
sales has steadily declined,
primarily due to a challenging
borrowing climate brought on
by interest rate increases in
2021.
Rental rates, however, have
followed a different
trajectory—continuing to rise,
fueled by strong demand from
medical occupiers and
significant price increases in
new medical outpatient
buildings, which have driven
average rates higher.
Page 5 U.S. healthcare market report | H1 2025
114,687
88,719
149,661
163,928
153,066
172,216
210,471
0
50,000
100,000
150,000
200,000
250,000
Jan 2018
Apr 2018
Jul 2018
Oct 2018
Jan 2019
Apr 2019
Jul 2019
Oct 2019
Jan 2020
Apr 2020
Jul 2020
Oct 2020
Jan 2021
Apr 2021
Jul 2021
Oct 2021
Jan 2022
Apr 2022
Jul 2022
Oct 2022
Jan 2023
Apr 2023
Jul 2023
Oct 2023
Jan 2024
Apr 2024
Jul 2024
Oct 2024
Jan 2025
Apr 2025
Source: Avison Young Market Intelligence, CoStar, Revistamed
Total U.S. medical job postings by month
Job postings volume
Medical job postings have
steadily risen since 2018,
reflecting growing demand for
medical services and staffing
challenges as competition
increases.
Page 6 U.S. healthcare market report | H1 2025
Market
fundamentals
Page 7 U.S. healthcare market report | H1 2025
Availability (msf) Availability Investment sales
Development (msf)Leasing activity (msf)Direct asking rents (psf/FS)
67
62
64
66
68
70
72
74
800
820
840
860
880
900
920
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Millions
Millions
Inventory Space available
0
1
2
3
4
5
0
1
2
3
4
5
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Millions
Millions
Absorptions QoQ New deliveries
0
5
10
15
20
25
30
35
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2023
Q1 2025
Q2 2025
Millions
Deliveries Under development
Base rent pricing distribution
Absorption vs. new deliveries (msf)
0
2
4
6
8
10
12
14
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Millions
$16.00
$25.00
$41.12
$0
$10
$20
$30
$40
$50
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2023
Q1 2025
Q2 2025
10th percentile 50th percentile 90th percentile
$20
$21
$22
$23
$24
$25
$26
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
Q2 2020
Q4 2020
Q2 2021
Q4 2021
Q2 2022
Q4 2022
Q2 2023
Q4 2023
Q2 2024
Q4 2024
Q2 2025
NNN average rent Availability
NNN average rent vs. availability
U.S. medical outpatient building market indicators
Source: Avison Young Market Intelligence, CoStar, Revistamed
Page 8 U.S. healthcare market report | H1 2025
93%
94%
$26.17
$31.18
$23
$25
$27
$29
$31
$33
93%
93%
93%
94%
94%
94%
94%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
92%
93%
$36.10 $36.44
$34
$34
$35
$35
$36
$36
$37
$37
91%
91%
92%
92%
92%
92%
92%
93%
93%
93%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
93%
93%
$20.95
$24.24
$19
$20
$21
$22
$23
$24
$25
92%
92%
92%
93%
93%
93%
93%
93%
94%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
Top market MOB fundamentals
Source: Avison Young Market Intelligence, CoStar, Revistamed
New York, NY Los Angeles, CA
Chicago, IL Houston, TX
Occupancy across the top 10
MOB markets remains high as
of Q2 2025, with some of the
highest occupancy rates
appearing in Houston and New
York at 94%. At the same time,
average NNN rental rates
continue to increase in each of
these markets, yet data indicates
that the prices are not deterring
tenants from occupying space.
Page 9 U.S. healthcare market report | H1 2025
Availability (msf) Availability Investment sales
Development (msf)Leasing activity (msf)Direct asking rents (psf/FS)
Philadelphia, PA Dallas, TX
Austin, TX
Large medical market occupancy and average NNN rental rate
Note: Absorption and rental averages are pulled from the top 50
markets, not only the markets included in these stats
Source: Avison Young Market Intelligence, CoStar, Revistamed
Phoenix, AZ
San Antonio, TX San Diego, CA
87%
89%
$21.45 $24.28
$19
$21
$23
$25
$27
$29
85%
86%
87%
88%
89%
90%
91%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
91%
93%
$22.39
$24.52
$18
$20
$22
$24
$26
$28
$30
90%
91%
91%
92%
92%
93%
93%
94%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
89% 90%
$24.38
$26.88
$23
$24
$24
$25
$25
$26
$26
$27
$27
$28
88%
88%
89%
89%
90%
90%
91%
91%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
93%
93%
$31.55
$33.81
$25
$27
$29
$31
$33
$35
92%
93%
93%
93%
93%
93%
94%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
90%
90%
$26.19
$28.21
$25
$26
$26
$27
$27
$28
$28
$29
88%
88%
89%
89%
90%
90%
91%
91%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
89%
90%
$22.85
$26.35
$21
$22
$23
$24
$25
$26
$27
89%
89%
89%
90%
90%
90%
90%
90%
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Occupancy rate Average NNN rental rate
Page 10 U.S. healthcare market report | H1 2025
Existing
inventory sf
Deliveries sf
(YTD)
Under
development sf
Net absorption sf
(YTD)
Absorption change
(YoY)
NNN
average rent
Base rent 90th
percentile
New York 77,832,055 774,225 1,024,873 822,591 147.90% $31.18 $50.21
Los Angeles 61,031,827 682,000 1,660,150 1,912,579 199.50% $36.44 $63.16
Chicago 47,002,191 76,475 731,300 189,299 71% $24.24 $35.00
Houston 46,564,501 90,532 1,217,128 342,580 223.50% $24.15 $33.87
Dallas 38,668,033 11,000 1,342,445 125,643 70.00% $26.35 $34.18
Atlanta 34,322,789 35,116 111,141 144,327 148.90% $23.42 $32.52
Philadelphia 32,910,284 0 241,000 52,512 49.20% $24.52 $33.93
Boston 27,011,231 136,000 260,353 186,133 84.40% $29.61 $40.71
Washington, D.C. 26,603,630 545,000 758,000 550,892 233.30% $27.63 $43.08
Phoenix 22,286,191 196,468 761,033 85,936 80.30% $24.28 $33.50
San Francisco 22,114,248 57,500 668,269 11,179 186.40% $39.90 $61.90
Detroit 19,956,608 0 174,000 31,764 -41.60% $18.38 $23.96
Seattle 19,339,976 192,361 63,000 205,886 134.80% $30.29 $39.39
MOB stats by market
Source: Avison Young Market Intelligence, CoStar, Revistamed
Page 11 U.S. healthcare market report | H1 2025
Existing
inventory sf
Deliveries sf
(YTD)
Under
development sf
Net absorption sf
(YTD)
Absorption change
(YoY)
NNN
average rent
Base rent 90th
percentile
Baltimore 16,563,982 0 763,770 54,647 151.00% $23.75 $34.79
Denver 16,066,661 45,000 345,400 125,789 295.00% $23.69 $30.04
San Diego 16,007,357 60,000 476,844 384,268 151.80% $33.81 $43.96
Indianapolis 14,706,322 154,350 129,206 240,745 231.30% $21.94 $28.00
Columbus 14,327,393 142,803 413,000 192,671 461.70% $17.34 $21.34
San Antonio 13,793,885 12,400 389,500 140,437 173.60% $26.88 $33.10
Charlotte 13,250,709 0 247,208 -21,225 357.70% $27.12 $36.40
Portland 13,021,569 0 0 -22,338 -12.20% $23.02 $34.36
Kansas City 12,301,799 24,342 944,613 49,031 33.90% $20.78 $29.00
Nashville 11,943,140 0 491,455 1,878 49.30% $23.89 $33.01
Milwaukee 10,107,846 22,000 8,100 103,443 119.30% $16.59 $25.84
Jacksonville 9,994,303 80,239 670,316 -15,104 173.60% $25.40 $38.56
Sacramento 9,138,126 268,228 599,611 294,397 491.10% $25.38 $35.26
MOB stats by market
Source: Avison Young Market Intelligence, CoStar, Revistamed
Page 12 U.S. healthcare market report | H1 2025
Existing
inventory sf
Deliveries sf
(YTD)
Under
development sf
Net absorption sf
(YTD)
Absorption change
(YoY)
NNN
average rent
Base rent 90th
percentile
Louisville 8,867,847 0 101,229 1,598 -4.50% $17.82 $30.40
Oklahoma City 8,722,358 47,636 269,770 44,012 94.10% $20.97 $27.20
San Jose 8,612,652 0 231,579 1,851 30.90% $43.59 $53.31
Austin 8,458,412 18,904 215,239 70,373 149.30% $28.21 $36.85
Las Vegas 8,423,337 91,311 90,000 148,860 272.70% $25.42 $36.11
Raleigh 7,371,063 307,041 60,000 343,061 779.70% $25.55 $36.25
Memphis 7,312,179 0 1,231,001 11,612 194.90% $25.76 $36.08
MOB stats by market
Note: Absorption and rental averages are pulled from the top 50
markets, not only the markets included in these stats
Source: Avison Young Market Intelligence, CoStar, Revistamed
Page 13 U.S. healthcare market report | H1 2025
MOB occupier
trends
Page 14 U.S. healthcare market report | H1 2025
56%
9%
13%
22%
Labor
Drugs
Supplies
Other
Labor spend dominated hospital expenses in
2024, as critical expenses continue to rise
Hospitals rely on a highly
skilled workforce, making labor
their largest expense,
accounting for 56% of total
costs. In response to persistent
staffing shortages, hospitals
have significantly increased
wages, with advertised nurse
salaries rising 26.6% above the
rate of inflation over the past
four years. While necessary to
sustain staffing levels, these
rising labor costs continue to
contribute to hospitals’
broader financial challenges.
Note: Representative office locations. Weekdays only.
Source: American Hospital Association: The Cost of Caring, Revista
CPI For All Urban Consumers: Medical Care in U.S. City Average
2020 to 2024 snapshot
of pricing changes
▲ +9.6%
Medical Care Consumer
Pricing Index (CPI)
▲ +8.7%
Ambulatory service
center worker wages
▲ +12.2%
NNN average rents
Page 15 U.S. healthcare market report | H1 2025
14.1%
5.1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Inflation IPPS Increases
Medicare reimbursement
continues to fall short, covering
only 83 cents per dollar of
hospital costs in 2023 and
resulting in over $100 billion in
underpayments, according to
American Hospital Association
(AHA) data. From 2022 to 2024,
inflation rose 14.1%, while
Medicare payment rates
increased just 5.1%, leading to
$8.4 billion in lost hospital
revenue. In total, hospitals
absorbed $130 billion in
Medicare and Medicaid
underpayments in 2023, with
shortfalls growing 14%
annually since 2019.
Inflation overshadows inpatient prospective
payment system (IPPS) net payment increases
FY 2022 to 2024
Source: American Hospital Association: The Cost of Caring
Page 16 U.S. healthcare market report | H1 2025
6.4%
6.0%
10.5%
14.7% 13.9%
12.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2019 2020 2021 2022 2023 2024
Increasing delays in
discharging patients to post-
acute care facilities are
extending inpatient stays,
especially among Medicare
Advantage (MA) patients.
These delays are often caused
by prior authorization hurdles
or limited post-acute care
networks within MA plans.
From 2019 to 2024, the
average length of stay before
discharge to post-acute care
for MA patients doubled
compared to Traditional
Medicare, leading to higher
hospital costs and
overcrowding.
Medicare Advantage delays
discharges to post-acute care
Percent longer Medicare Advantage stay compared to Traditional Medicare
Source: American Hospital Association: The Cost of Caring
Page 17 U.S. healthcare market report | H1 2025
$939,610
$1,030,008
$1,107,117
2023
2024
May 2025
(annualized)
▲ +7.6%
May 2025 vs. 2024
▲ +18.2%
May 2025 vs. 2023
The cost to operate physician
practices continues to rise
across the U.S., with the
median annualized investment
per physician full-time
equivalent (FTE) reaching
$332,512 in May—up 4.7%
from 2024 and 19.2% from
2023. This was largely driven
by higher expenses, as median
total costs per physician
reached $1.1 million, up 7.6%
YoY.
Total direct expense per physician
full-time-equivalent (FTE)
Source: Strava Performance Trends Report Q1 2025
Page 18 U.S. healthcare market report | H1 2025
Reasons private practices were sold
6.8% 6.6% 6.9% 9.7% 6.1%
4.8% 5.7% 4.3%
9.2% 11.7%
5.2% 6.6% 8.3%
7.9% 15.0%
12.5% 16.2% 17.0%
18.2%
19.3%
26.9%
27.9% 30.0%
29.2% 22.4%
43.80% 37.10% 33.60% 25.90% 25.60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Better negotiate
higher payment rates
with payers
Improve access to
costly resources
Better manage payers'
reg. and admin.
requirements
Ease participation in
risk-based payment
models
Increase availability of
additional services
that patients need
Don't know Not important at all (1) 2 3 4 Very important (5)
In the AMA 2024 Physician
Practice Benchmark Survey,
70.8% of physicians rated better
negotiating higher payment
rates with payers as highly
important (4 or 5 on a 1-5 scale).
64.9% and 63.6% of physicians
rated improving access to costly
resources and better managing
payers’ regulations and
administrative requirements as
highly important, respectively.
This survey highlights the
challenges many physician
groups are facing and underpins
why many are moving away
from private practice and
flocking toward provider
systems.
Source: AMA 2024 Physician Practice Benchmark Survey
70.8%
64.9% 63.6%
Page 19 U.S. healthcare market report | H1 2025
6%
7%
15%
19%
20%
22%
28%
29%
44%
48%
58%
58%
80%
Climate change and natural disasters
Health care consolidation
Progression in technology
Too many system/equipment breakdowns occurring at once
Meeting environmental sustainability goals, metrics and targets
Supply chain shortages
Regulatory burdens
Supply chain cost increases
Manufacturers no longer supporting certain equipment/systems
Staff lacking necessary skills/knowledge base
Lack of funding/budget limitations
Recruiting and retaining staff
Aging facility and infrastructure
The 2024 American Society for
Health Care Engineering
(ASHE) Hospital Operations
Survey revealed 80% of
hospital facilities managers
identified aging facility and
infrastructure as their most
urgent maintenance concern.
This figure suggests
opportunity for healthcare
real estate activity as
maintenance costs outweigh
the benefit of staying put.
Top maintenance challenges for
health care facilities managers
Source: 2024 ASHE Hospital Operation Survey
Page 20 U.S. healthcare market report | H1 2025
MOB capital
markets trends
Page 21 U.S. healthcare market report | H1 2025
$10B
$4B
$1B
5.1%
7.7%
6.8%
5%
5%
6%
6%
7%
7%
8%
8%
$0B
$2B
$4B
$6B
$8B
$10B
$12B
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Sale volume Weighted cap rate
While predicting future cap
rates has historically been
challenging due to shifting
capital and tenant trends, it’s
clear that cap rates in 2025 are
higher than during periods of
more borrower-friendly
interest rates. As a result, sales
volume in the medical
outpatient building market has
remained largely flat since
early 2024, with investors
taking a cautious approach as
they evaluate their options.
Sales volume and quarterly cap rate
Source: Avison Young Market Intelligence, CoStar, Revistamed
Page 22 U.S. healthcare market report | H1 2025
$671M
$816M
$581M $423M
$584M
$274M
$943M
$1,304M
$2,137M
$537M
$517M
$243M
$0M
$500M
$1,000M
$1,500M
$2,000M
$2,500M
2020 2021 2022 2023 2024 2025 H1
New York City Metro Los Angeles Metro Houston Atlanta Phoenix Charlotte Minneapolis
Historically, as the largest
markets, Los Angeles and New
York City have led the country in
total investment sales for
medical outpatient facilities.
However, starting in 2023, this
trend has not been as clear, with
some unexpected markets such
as Phoenix and Atlanta
becoming more interesting to
investors.
This shift is likely a result of
investors placing less emphasis
on the location of a deal, and
more focus on factors like tenant
credit, weighted average lease
term (WALT), tenant
composition, and property class.
MOB investment sales by market
Source: Avison Young Market Intelligence, CoStar, RCA Real Capital Analytics
Page 23 U.S. healthcare market report | H1 2025
MOB investor capital flows (net acquisitions)
$78M
$526M $326M $150M
-$11M
-$54M
$2,201M
$1,807M $1,485M
$512M
$1,936M
-$126M
-$926M
$2,424M
$72M
-$45M
-$2,094M
-$1M
-$1,161M
-$4,435M
-$988M -$678M
$249M
$79M
-$5,000M
-$4,000M
-$3,000M
-$2,000M
-$1,000M
$0M
$1,000M
$2,000M
$3,000M
2020 2021 2022 2023 2024 2025 H1
Millions
Cross-border Institutional REIT/listed Private
During the difficult lending
environment of 2022 to 2024,
private investors sold far more
medical property than they
acquired, while REITs and
institutional owners continued
to purchase property
regardless.
So far in 2025, the opposite
trend has presented itself,
potentially signaling a shift in
who is buying and who is
selling. Private owners have
increased their medical
holdings overall, which has not
occurred for the past five years.
Source: Avison Young Market Intelligence, CoStar, RCA Real Capital Analytics
Page 24 U.S. healthcare market report | H1 2025
Buyer composition
2.7% 3.6% 1.1% 1.9%
13.7% 14.8% 19.1% 11.4%
33.0%
11.1%
38.7%
2.1%
46.4%
59.8%
34.0%
74.7%
4.0% 10.8% 7.1% 10.0%
2022 2023 2024 2025 H1
Cross-border Institutional REIT/listed Private User/Other
Despite only making up 34% of
the buyers in 2024, private
investors have accounted for a
substantial 74.7% of the buyer
pool so far in 2025.
Meanwhile, REITs have
accounted for just 2.1% of
medical property acquisitions
in 2025—a sizable decline from
2024, when they represented
38.7% of buyers.
Source: Avison Young Market Intelligence, CoStar, RCA Real Capital Analytics
Page 25 U.S. healthcare market report | H1 2025
Seller composition
1.1% 1.7% 1.1% 3.1%
6.3% 8.3% 5.2% 14.2%
32.8%
11.2%
53.8%
2.2%
51.5%
68.4%
32.0%
71.3%
8.3% 10.5% 7.8% 9.1%
2022 2023 2024 2025 H1
Cross-border Institutional REIT/listed Private User/Other
Despite being the biggest buyer,
private investors are also the
biggest sellers, while
institutional sellers have grown
to make up a sizeable 14.2% of
the seller pool in 2025 YTD.
Source: Avison Young Market Intelligence, CoStar, RCA Real Capital Analytics
Page 26 U.S. healthcare market report | H1 2025
Recent leasing activity
Tenant
Market Address Sign date Size (sf) Transaction type Lease type
Methodist Hospitals of Dallas
Dallas, TX 1500 S Dallas Pky March 2025 200,000 New Direct
Sutter Health
Sacramento, CA 660 J St April 2025 113,000 New Direct
MedStar Health
Washington D.C. 1133 21st NW March 2025 91,590 Renewal Direct
Recent sales activity
Buyer
Market Address Sale date
Building/portfolio size (sf)
Sale price Sale price psf Seller
AdventHealth
Orlando, FL 1724 N Mills Ave April 2025 71,000 $60,000,000 $845 Upshot Capital Advisors LLC
Hammes Partners
Milwaukee, WI 1155 N Mayfair Rd Feb 2025 100,977 $52,500,000 $520 Heitman
New York Life Insurance Company
Pembroke Pines, FL 400-700 N Hiatus Rd June 2025 91,956 $38,300,000 $417 Triarch Capital Group
Top projects under development
Address
Market Delivery date Building size sf Developer
1520 1
st Ave New York, NY 2025 435,000 Extell Development Company
265 South Orange St.
New Haven, CT 2026 255,640 Ancora Partners, LLC
1501 N Capitol Ave
Indianapolis, IN 2026 250,000 IU Health
Notable medical market activity
Source: Avison Young Market Intelligence, CoStar, Revistamed.
RCA: Real Capital Analytics
Page 27 U.S. healthcare market report | H1 2025
For more market insights and information visit avisonyoung.com
For more market insights and
information visit avisonyoung.com
© 2025 Avison Young. All rights reserved. E. & O.E.: The information contained herein was obtained from
sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.
Derek Jacobs
U.S. Healthcare Lead, Market Intelligence
derek.jacobs@avisonyoung.com
+1 919 429 1554
Madelyn Blum
Analyst, Market Intelligence
madelyn.blum@avisonyoung.com
+1 202 644 8702