Dupuy: There is some space demand growth associated with increasing demand for medical services as the population expands and the number of covered persons increases. Still, the pace of demand for space has been increasing slowly as medical practices become increasingly efficient. As practices implement corporate sophistication to their operations, they are continuing to find ways to utilize less and less space. Exam rooms are being designed smaller, file storage is not as prevalent as it once was and staff are working in smaller, more efficiently designed business centers.

GlobeSt.com: Why is the rate trending higher for on-campus building?

Dupuy: The main drivers of healthcare real estate are the hospital systems. The larger systems seem fairly content with their footprint in the on-campus market. The off-campus market has seen some hospital system related build to suits in order to reach out to the patient base.

GlobeSt.com: What is your prediction for rest-of-year MOB sector?

Dupuy: With economic growth likely to be modest and a lack of transparent regulation expected to persist, current vacancy rates should be the new normal for the foreseeable future. With vacancy elevated, asking rates should remain fairly static as well.