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Medical Outpatient Buildings Thrive Amid Growing Senior Population

Vacancy fell this year and asking rents increased despite a robust pipeline of deliveries.

By Kristen Smithberg | November 19, 2024 at 06:53 AM

Medical Outpatient Buildings (MOB) are well positioned to capitalize on the aging US population as the entire Baby Boomer generation reaches retirement age by 2030. Seniors are expected to increase total outpatient healthcare spending by 31% over that time to nearly $2 trillion.

The category is driven by patients seeking convenient locations for accessing healthcare services outside of traditional hospital campuses, according to CBRE’s 2025 US healthcare real estate outlook. Eighty percent of new medical outpatient buildings are being developed farther away from hospital campuses in residential and retail districts. The average size of a new MOB not adjacent to a hospital campus is 26,500 square feet.

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