Office Leasing in 2024: Why Medical Office Buildings Continue to Outperform
Overview
While much of the office sector continues to work through structural change, medical office buildings (MOBs) remain one of the most resilient segments of commercial real estate. Unlike traditional office users, healthcare providers are not driven by remote work trends or hybrid policies. Patient access, clinical efficiency, and long-term demographic demand continue to anchor medical office leasing activity.
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Office Leasing in 2024: Why Medical Office Buildings Continue to Outperform
As a result, MOBs have outperformed conventional office assets in both occupancy and stability throughout 2024.
Why Medical Office Demand Is Structurally Different
Medical office demand is tied to healthcare utilization, not workplace preference. Physicians, outpatient providers, and clinical groups require physical space to deliver care, and proximity to patients remains critical.
Key drivers supporting MOB demand include:
Aging population demographics
Continued shift toward outpatient care
Expansion of ambulatory surgery centers
Increased focus on patient experience and convenience
These factors have insulated medical office from the volatility impacting traditional office leasing.
Leasing Characteristics That Set Medical Office Apart
Medical office leases differ meaningfully from standard office transactions. Tenants often require:
Specialized plumbing and mechanical systems
Higher power and HVAC capacity
Regulatory compliance and medical-grade finishes
Because of these requirements, MOB leases tend to be longer-term, and tenants are far less likely to relocate frequently. This stability benefits landlords and lenders, reinforcing MOBs as a preferred asset class.
Capital Markets Perspective on Medical Office
From a capital standpoint, medical office buildings continue to attract institutional and private capital. Financing for MOBs remains more accessible than for traditional office properties, and pricing has held up comparatively well.
Unlike commodity office buildings facing refinancing pressure, most medical office assets are not experiencing the same level of distress or forced repricing.
What Medical Office Tenants Should Be Thinking About
For healthcare tenants, timing and planning remain critical. While demand is strong, well-located medical office space—especially near hospital campuses or population centers—remains competitive.
Tenants should:
Plan well in advance of lease expirations
Carefully evaluate landlord financial strength
Prioritize flexibility for future service expansion
Medical office remains one of the few segments where proactive strategy matters more than market leverage.
Written by:
Graham Perry
Senior Director specializing in tenant representation, office leasing strategy, and healthcare real estate transactions.
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