Medical office buildings (MOBs) re-emerged as a favored investment asset class in 2025, supported by improving capital markets and renewed lender confidence. After a prolonged slowdown, a broader pool of debt providers returned with more competitive pricing, enabling transactions that had been sidelined in prior years.

Turn to Wexler Healthcare & Commercial Properties, the leader in healthcare real estate in New York City for over 40 years.

While overall sales volume remains below the peak levels seen in 2021 and 2022, 2025 marked a clear inflection point. Large-scale portfolio acquisitions in the second half of the year signaled growing institutional conviction, highlighted by the $7.2 billion acquisition of nearly 300 MOBs by Remedy Medical Properties and Kayne Anderson Real Estate—one of the largest transactions in sector history.

Investors are benefiting from increased predictability across both debt and equity markets. Although interest rates remain higher than historical lows, improved stability has reduced execution risk and enhanced underwriting clarity. As a result, private capital has stepped in aggressively, particularly as publicly traded healthcare REITs continue to remain largely on the sidelines.

Supply constraints remain a defining characteristic of the MOB sector. A significant portion of medical office inventory is still controlled by health systems, and limited speculative development has restricted new product delivery. These dynamics help support asset values, occupancy stability, and long-term income durability.

For investors seeking defensive cash flow, strong tenant retention, and insulation from broader office market volatility, medical office buildings continue to offer a compelling risk-adjusted return profile.

Owning Your Medical Office: A Stable Path to Practice Growth and Long-Term Value

For physicians, practice groups, and healthcare operators, 2025 marked an improved environment for acquiring and owning medical office real estate. Expanded lender participation and more flexible financing structures have made owner-occupied MOB purchases increasingly attainable, even in a higher-rate environment.

Stability in capital markets has created greater certainty for end-users seeking to control their occupancy costs while building long-term equity. Rather than leasing space indefinitely, many medical professionals are evaluating ownership as a strategic component of both practice operations and personal wealth creation.

Limited new supply of medical office buildings—combined with consistently strong demand for outpatient care—continues to support occupancy and rental fundamentals. These conditions help protect property values while allowing owner-users to benefit from appreciation, tax advantages, and inflation-hedged income over time.

With institutional buyers focused primarily on large portfolios, individual medical practices and small groups face less competition when pursuing single-asset acquisitions. This creates opportunities for physicians to secure well-located properties that serve both operational needs and long-term investment objectives.

For healthcare providers looking to open, expand, or relocate their practices, owning the real estate offers control, stability, and an additional layer of financial resilience beyond the practice itself.

At Wexler Healthcare & Commercial Properties, we specialize in guiding both investors and owner-users through the acquisition, financing, and positioning of medical office assets to support long-term success.

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