Healthcare Capital Markets 2025 Outlook

Lenders Are Eager To Deploy Debt Capital CRE lenders have grown more willing to lend as the outlook grows clearer

Origination Volume Increases

• The worst of the lender pullback appears to be over, with loan origination volume up 7.4% year-over-year (YOY) across major lender groups for all property types. However, 2024 volume still trails the 2017-2019 average by 25%. • Healthcare origination nearly doubled in 2024, however, like all property origination, lending in the healthcare sector lags the 2017-2019 average by 20%. • Improved investor and lender sentiment signals increased origination activity ahead as both groups gain confidence in the outlook and adapt to higher interest rates. • Although the Fed is expected to proceed cautiously with rate cuts, strong CRE healthcare fundamentals suggest lenders will find opportunities in the MOB sector, increasing capital availability for investors.

$900

120%

100%

$800

80%

$700

60%

$600

40%

$500

20%

$400

0%

$300

Billions

-20%

$200

-40%

$100

-60%

$0

-80%

Loan Origination-All Property Types Y/Y % Change in All Property Origination Y/Y % Change in MOB Origination

Source: MSCI Real Capital Analytics (data through November 2024); includes all sectors. Updated January 2025.

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