These demographics changes are also fueling more medical office activity, along with job and population growth—but the industry is also changing. "While the shift in demographics is fueling more demand for medical services; the way in which medicine is practiced, particularly from a cost side, is changing rapidly," says Brophy. "One of the ways insurance and medical providers are attempting to contain these rising costs has been the implementation of telemedicine, i.e. over-the-phone/internet medicine. Additionally use of AI and machine learning, while still in its early stages of deployment, has seen a rapid expansion in use of its diagnostic capabilities with early results showing tremendous improvement in faster, more streamlined care. Operators/investors/owners of MOB assets will need to stay apprised of these advances, in much the same way retail is only now responding to the 'Amazon' effect, as they will, in turn, change the way care is delivered."

Looking into 2020, Brophy expects the market to show a similar performance. "Given robust population and job growth should continue to propel the MOB market in both the near-to-medium terms. More than $1 billion of bioscience related projects are currently under construction, with more than $2 billion set to launch over the next couple years and expected to create nearly 7,000 new jobs once all projects are completed," he says. "Major projects to watch include, ASU/Wexford's 227,000 SF medical lab/office space in Downtown Phoenix's Biomedical Corridor, Creighton University's Medical School at Park Central and Mayo Clinic's $600 million North Phoenix campus expansion."