{"id":1004763601,"date":"2025-07-23T02:39:21","date_gmt":"2025-07-23T10:39:21","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004763601"},"modified":"2025-11-16T06:47:38","modified_gmt":"2025-11-16T14:47:38","slug":"top-5-u-s-medical-office-markets-by-inventory","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/top-5-u-s-medical-office-markets-by-inventory\/","title":{"rendered":"Top 5 US MOB Markets by Inventory"},"content":{"rendered":"\n<p>The medical office sector continues to demonstrate remarkable stability across real estate cycles, buoyed by consistent demand for health-care services, an aging population and the sector\u2019s resilience to remote work trends.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"512\" data-attachment-id=\"1004763612\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/top-5-u-s-medical-office-markets-by-inventory\/attachment\/1542104\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1542104.jpg\" data-orig-size=\"640,512\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"1542104\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1542104.jpg?w=640\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1542104.jpg\" alt=\"Fort Bend Medical and Diagnostic Center in Sugar Land, Texas, reflects Houston\u2019s lead in medical office growth, driven by strong demand and ongoing expansion in key suburbs.\" class=\"wp-image-1004763612\" style=\"width:371px;height:auto\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1542104.jpg 640w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/1542104.jpg?resize=300,240 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><figcaption class=\"wp-element-caption\">Fort Bend Medical and Diagnostic Center in Sugar Land, Texas, reflects Houston\u2019s lead in medical office growth, driven by strong demand and ongoing expansion in key suburbs. <em>Image courtesy of Yardi Research Data<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>According to Yardi Research Data, the U.S. is home to 28,726 medical office properties totaling more than 2.2 billion square feet of rentable space. Within that national landscape, five major metros lead the way in terms of inventory and long-term positioning.<\/p>\n\n\n\n<p>These top markets\u2014Houston, Washington, D.C., Los Angeles, Chicago and Manhattan\u2014combine deep health-care ecosystems with dense populations and strategic infrastructure, making them <a href=\"https:\/\/www.commercialsearch.com\/news\/medical-office-real-estate-trends-to-watch\/\">magnets for both providers and investors<\/a>.<\/p>\n\n\n\n<p>\u201cThe top medical office markets are stable metro areas with projected population growth,\u201d said Marianne Skorupski, director of National Office Research at Colliers. \u201cThey each have premier health systems that are growing within their regions, expanding services and capabilities. These regions will continue to be centers of excellence, drawing patients from around the world for specialized care.\u201d<\/p>\n\n\n\n<p>Below, we rank the top five medical office building markets by total inventory, using Yardi Research Data on rentable square footage and construction activity to offer a snapshot of their position in today\u2019s health-care real estate landscape.<\/p>\n\n\n\n<iframe title=\"Top 5 U.S. MOB Markets by Inventory\" aria-label=\"Table\" id=\"datawrapper-chart-PB2PA\" src=\"https:\/\/datawrapper.dwcdn.net\/PB2PA\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"352\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}}))}();\n<\/script>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-houston\">1. Houston<\/h2>\n\n\n\n<p>Houston tops the nation in medical office inventory, with 101.2 million square feet across 896 properties\u2014accounting for 4.5 percent of the country\u2019s total medical office stock. The metro also leads in active construction, with 13 properties underway encompassing more than 1.1 million square feet, underscoring continued confidence in <a href=\"https:\/\/www.commercialsearch.com\/news\/houston-a-bright-spot-among-slowing-medical-office-sector\/\">long-term health-care demand<\/a>.<\/p>\n\n\n\n<p>According to Colliers\u2019 Q2 2024 data, Houston recorded the highest annual net absorption among major U.S. metros\u20141.3 million square feet\u2014outpacing the 950,000 square feet delivered during the same period.<\/p>\n\n\n\n<p>Ryan McCullough, Partner at Texas-based Partners Real Estate, attributes this momentum to Houston\u2019s global reputation for medical care and its favorable fundamentals. \u201cThe Houston Medical Center is a worldwide destination for medical care,\u201d he noted. \u201cCoupled with a low cost of living, we\u2019ve seen consistent population growth leading to more demand for care.\u201d<\/p>\n\n\n\n<p>He also pointed to the market\u2019s ease of development as a key advantage.<\/p>\n\n\n\n<p>\u201cThe barriers to entry are low, allowing for a variety of players to undertake opportunistic developments.\u201d Investor interest is particularly strong in high-growth suburbs like The Woodlands, Sugar Land and the NASA\/Clear Lake area, where joint venture outpatient centers are expanding the metro\u2019s footprint.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-washington-d-c\">2. Washington, D.C.<\/h2>\n\n\n\n<p>A close second to Houston, Washington, D.C., boasts 101.1 million square feet of medical office space across 1,059 properties, making up close to 4.5 percent of the nation\u2019s total medical office inventory. This high medical office-to-office ratio signals just how embedded the sector is in the region\u2019s health-care framework.<\/p>\n\n\n\n<p>Though new development is limited\u2014just 30,000 square feet under construction as of June\u2014the market remains highly stable, supported by steady tenant activity. A recent example is MedStar Pediatrics\u2019 lease of 25,000 square feet at 4200 Wisconsin Ave., a move that signals continued suburban growth for the health-care system. This new urgent care location reflects a broader trend: demand for medical office space is being driven by a mix of academic medical centers and regional heavyweights such as MedStar Health, Inova and Georgetown University Hospital, all of which continue to expand outpatient services across the metro.<\/p>\n\n\n\n<p>What\u2019s more, Washington, D.C., benefits further from a well-educated, affluent population increasingly seeking outpatient services. Strong policy support for health-care expansion\u2014combined with active institutional participation\u2014continues to enhance the region\u2019s appeal to developers, health systems and investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-los-angeles\">3. Los Angeles<\/h2>\n\n\n\n<p>Los Angeles is home to one of the largest and most complex medical office markets in the U.S., with 98 million square feet across 1,132 properties\u2014roughly 4.3 percent of the national inventory. Major health systems like UCLA Health, Cedars-Sinai and Kaiser Permanente continue expanding their outpatient networks across the metro\u2019s diverse submarkets.<\/p>\n\n\n\n<p>\u201cLos Angeles continues to see strong medical office demand driven by outpatient care growth, particularly as services shift into more localized, retail-based clinics,\u201d said Daniel Solomon, vice president &amp; health-care real estate specialist at Kidder Mathews. \u201cIn Q4 2024 alone, the region absorbed 19 million square feet\u2014up nearly 15 percent year-over-year\u2014with occupancy rising above 92 percent.\u201d<\/p>\n\n\n\n<iframe title=\"Top 5 U.S. MOB Markets by Inventory\" aria-label=\"Table\" id=\"datawrapper-chart-VGYYu\" src=\"https:\/\/datawrapper.dwcdn.net\/VGYYu\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"352\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}}))}();\n<\/script>\n\n\n\n<p>While just over 124,000 square feet is under construction, high land and building costs in dense areas like Mid-Wilshire constrain new supply. That imbalance between supply and demand is what continues to drive value, Solomon noted.<\/p>\n\n\n\n<p>He added that over half of new construction in 2024 was health system-led, guided by data on patient flow and community needs. High-profile projects such as UCLA\u2019s $452 million redevelopment of Olympia Medical Center reflect long-term investment in outpatient care as systems adapt to demographic shifts, policy changes and the push toward lower-cost, community-based care delivery.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-chicago\">4. Chicago<\/h2>\n\n\n\n<p>Chicago ranks among the nation\u2019s top medical office markets, with 95.4 million square feet spread across 994 properties, accounting for 4.2 percent of the nation\u2019s medical office inventory. The market balances scale with steady renewal: About 927,000 square feet of medical space across six projects was under construction in June, reflecting ongoing developer confidence in health-care real estate.<\/p>\n\n\n\n<p>The largest project underway is AbbVie Foundation Cancer Pavilion in South Chicago, a 575,000-square-foot project spearheaded by the University of Chicago Medicine. Meanwhile, architectural plans were approved in 2024 for Northwestern Medicine\u2019s five\u2011story, $80 million medical office building at Bronzeville, which will add substantial suburban-style care facilities on Chicago\u2019s South Side.<\/p>\n\n\n\n<p>Leading health systems\u2014Northwestern Memorial, Rush University Medical Center and University of Chicago Medicine\u2014continue to anchor leasing and expansion. Beyond institutional development, <a href=\"https:\/\/www.commercialsearch.com\/blog\/medical-office-building-report-pipeline-2025\">medical office building sales surged in 2024<\/a>, with a nearly 34 percent year-over-year increase in acquisitions of outpatient facilities, driven by rising investor interest, according to Yardi Research Data.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-manhattan\">5. Manhattan<\/h2>\n\n\n\n<p>As of June, Manhattan featured 90.5 million square feet of medical office space across 377 properties, accounting for 4.0 percent of the nation\u2019s medical office inventory. The market is defined by its density and institutional strength, home to some of the country\u2019s most prominent health-care systems.<\/p>\n\n\n\n<p>Due to tight land availability, steep construction costs and strict zoning laws, new ground-up development remains limited\u2014just 636,100 square feet across three properties. However, this scarcity helps preserve the value of existing assets and encourages landlords to pursue redevelopment and vertical expansion as primary strategies for modernization and growth.<\/p>\n\n\n\n<p>A prime example is the 30-story, 400,000-square-foot medical office building at 403\u202fE.\u202f79th\u202fSt., which topped out in mid-2024 and is <a href=\"https:\/\/www.commercialsearch.com\/news\/manhattan-office-market-shows-a-promising-start\/\">expected to deliver in 2025<\/a> as a major outpatient and surgical center for Hospital for Special Surgery. Additionally, Park Sixty, a 179,000-square-foot Class\u202fA medical office property, recently underwent a $20 million modernization to enhance infrastructure and amenities.<\/p>\n\n\n\n<p>Leading institutions\u2014NewYork-Presbyterian, Mount Sinai and NYU Langone\u2014continue to drive demand. Manhattan also claimed 24 of the top 100 office leases signed in 2024, highlighting the borough\u2019s enduring appeal to major health-care and commercial tenants.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>These metros are strongholds for medical office growth and health-care investment, according to Yardi Research Data.<\/p>\n","protected":false},"author":741,"featured_media":1004763612,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22251,41288,21754,23891,37749],"tags":[39329],"class_list":["post-1004763601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-focus","category-rc-listicles","category-medical-office","category-national","category-research-center-cpe","tag-topofthelist"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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