Vital Signs: 2025 Healthcare Update

2024 Transaction Volume Up 62% YOY Sales activity remains subdued relative to 2022 peak levels.

CAPITAL MARKETS

• Investment activity for both on- and off-campus sales totaled $6.7 billion for the first three quarters of 2024, up 62% YOY for the same period in 2023. • On-campus sales totaled $1.8 billion through the first three quarters, more than double the sales activity from the same period last year. Third-quarter pricing was up 2.4% QOQ but flat YOY. • Off-campus sales volume totaled $4.9 billion for the first three quarters of 2024, up 39% from the same period last year. Pricing was up 6.4% QOQ and up 0.4% on a YOY basis. • High interest rates, which kept sales activity muted, are expected to continue to drop in 2025, as the recent 75 bp cut has improved sentiment. Declining interest rates are expected to improve liquidity in the market and result in increased transaction activity in 2025.

$6

$450

$5

$400

$4

$350

$3

$300

Billions

$2

$250

Price Per Square Foot

$1

$200

$0

$150

On-Campus Sales Volume

Off-Campus Sales Volume

On-Campus Price PSF (TTM)

Off-Campus Price PSF (TTM)

Source: Revista Med (based on Top 50 Markets, 7,500+ sf MOBs), Cushman & Wakefield Research

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