Rents for medical office buildings are getting a closer look in this challenging economic period for commercial real estate as the sector's defensive qualities can be a comfort for investors.
Medical office features long-term leases, reliable net operating income with predictable but modest rental increases, and steady average national occupancy at 92% through all cycles, according to JLL's latest Healthcare Perspectives report.
These are an offset to higher rent growth from in-favor, high-growth sectors such as industrial and multifamily, with more cyclical characteristics.
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