Vital Signs 2022

Update On the Medical Office Building Sector

Leasing Markets After occupancies had slightly fallen off into 2020, there has

Occupancy Trends in Medical Office Buildings

93.0%

been noticeable growth. Currently, occupancy for US MOBs is 92% in Q3 2022, remaining largely flat for the year so far. Leasing activity has increasingly moved to higher-quality assets in the medical office space. This trend has not been unique to medical office, as other asset types also have experienced leasing activity concentrated among trophy assets in the wake of the pandemic. However, leasing momentum has generally continued with some tenants seeking to lock in longer term leases in new buildings to mitigate potential inflationary risk.

92.5%

92.0%

91.5%

91.0%

90.5%

2017 Q1

2021 Q1

2015 Q1

2018 Q1

2016 Q1

2019 Q1

2022 Q1

2017 Q3

2021 Q3

2015 Q3

2018 Q3

2016 Q3

2019 Q3

2020 Q1

2022 Q3

2020 Q3

Quarterly Weighted Avg Occupancy

2015 - 2021 Avg Occupancy

Source: Revista Med, Cushman & Wakefield Research

9