Clint Hinds

Demand for Medical Office Buildings Extends Far from Hospitals

Demand for Medical Office Buildings Extends Far from Hospitals

Demand for Medical Office Buildings Extends Far from Hospitals

By Clint Hinds, Bentall Kennedy A major shift in the healthcare delivery model is opening up a more geographically diverse market for medical office building (MOB) space.  Demand is moving beyond hospital campuses to become more deeply embedded in the communities they serve.  And this trend represents new opportunities for investors and developers. The MOB market is thriving, with good prospects for years to come.   Despite new development averaging 11.6 million square feet annually over the past seven years, the national vacancy rate is about 9.5 percent and has been trending downward for several years. Rent growth is more stable…