Healthcare Capital Markets 2025 Outlook

Opportunities in Growth Markets Robust rent growth and high occupancy rates

Development Lags Demand

• Markets with high occupancy rates and robust rent growth present opportunity. • The high cost of new construction makes repositioning older assets in these markets an attractive way for buyers to capitalize on growth dynamics. • With a constrained construction pipeline, markets with occupancy rates below the top 50 average will likely experience occupancy increases in 2025, providing additional opportunities to investors.

96%

Hi-Growth

New York

Tampa

95%

Boston

Riverside

Miami

San Francisco

Seattle

94%

San Diego

Chicago

Baltimore

Atlanta

Minneapolis

93%

Philadelphia

Los Angeles

Top50

92%

Denver

Washington DC

91%

Dallas

Phoenix

90% 2024 Q4 Occupancy

Detroit

Houston

89%

Bubble size based on market inventory size

88%

-2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

2024 YOY Rent Growth

Source: RevistaMed, Cushman & Wakefield Research

11