Figures

Denver Medical Office Figures H2 2022

February 7, 2023

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  • Metro Denver’s medical office building (MOB) market posted 228,600 sq. ft. of positive net absorption in 2022, continuing its momentum from the 233,800 sq. ft. recorded in 2021.
  • 21 properties traded hands in the second half of 2022 for a total sales volume of $119.1 million ($291.58 per sq. ft.), bringing annual investment sales activity to $265.8 million ($283.09 per sq. ft.), an increase of 7.2% year-over-year.
  • After reaching a record high in 2021, the average direct asking rate marginally decreased 0.8% year-over-year to $33.70 per sq. ft. FSG. Off-Campus lease rates drove the annual dip, decreasing 2.4% year-over-year to $31.48 per sq. ft.
  • Direct vacancy decreased 80 basis points (bps) from the end of 2021 to 6.4% in 2022, marking the lowest vacancy rate in the last five years.
  • The construction pipeline remained below historical levels with just four MOB properties totaling 164,000 sq. ft. underway as of year-end 2022. Two properties delivered in 2022, both of which were completed during the first half of the year.