The stars are aligned for a healthy new year in 2025 as vital signs for the medical outpatient building sector appear to be improving. Lower vacancy rates, higher rents, more leasing activity, increased absorption, and a 48% uptick in annual sales volume are all showing up on corporate monitors, according to CBRE’s 2025 U.S. Healthcare Real Estate Outlook.

Leading the way in new MOB construction in 2Q 2024 was New York City, where 926,643 square feet was already underway. And CBRE expects the trend to continue in the future.

Five sites in NYC’s Upper East Side and Brooklyn are seeing the most new construction in the city. “Manhattan’s Upper East Side will continue to be a hot spot given the area is home to campuses belonging to major hospitals such as Hospital for Special Surgery, Mount Sinai, NY-Presbyterian/Weill Cornell, Memorial Sloan Kettering and Rockefeller University,” said Bill Hartman, CBRE vice chairman.