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Q3 2026 U.S. Medical Outpatient Buildings Market Report

November 5, 2026 5 Minute Read

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MOB Market Fundamentals Show Improvement

Notes: Arrows indicate year-over-year change.
Source: CBRE Research, Q3 2026.

Net Absorption Remains Positive

Source: CBRE Econometric Advisors, CBRE Research, Q3 2026.

MOB net absorption increased by 20% year-over-year to 931,000 sq. ft., continuing a trend of positive demand and occupier confidence since Q2 2025.

MOB Vacancy Rate Falls

Source: CBRE Econometric Advisors, CBRE Research, Q3 2026.

The overall MOB vacancy rate fell by 17 basis points (bps) year-over-year to 9.7%. Three consecutive quarters of declining vacancy signal that improving demand is gradually tightening MOB space availability.

Construction Completions Continue to Slow

Source: CBRE Econometric Advisors, CBRE Research, Q3 2026.

MOB construction completions fell precipitously to 264,000 sq. ft. in Q3 from just over 1 million sq. ft. a year ago and well below the 2 million- to 3 million-sq.-ft. quarterly average over the past decade. The sharp year-over-year decline reflects a leaner development pipeline, as elevated construction costs continue to constrain new development.

Average MOB Asking Rent Increases by 1.3%

Source: CBRE Econometric Advisors, CBRE Research, Q3 2026.

Average MOB asking rent increased by 1.3% year-over-year to $25.52 per sq. ft. A persistent pullback in new construction has kept supply in check, limiting landlord concessions and sustaining the gradual rent growth trend that has held for more than a decade.

MOB Investment Sales Rebound

Note: Investment sales volume for Q3 2026 excludes the acquisition of Sila Realty Trust by Blue Owl Capital on July 1, 2026, and Cerberus' sale of Tenet Equity to CBRE Investment Management on September 8, 2026.
Source: CBRE Research, MSCI Real Assets, Q3 2026.

MOB investment sales increased by 13.4% year-over-year to $3.1 billion, up by 11.1% from the 2021-2026 quarterly average of $2.8 billion. Investor confidence has returned in force, with trailing four-quarter volume up by 58% year-over-year to $14.8 billion. Stabilizing interest rates and durable healthcare demand appear to have drawn capital back to the sector.

Average MOB Cap Rate Stabilizes

Note: MSCI data includes portfolio sales.
Source: CBRE Research, MSCI Real Assets, Q3 2026.

The average MOB cap rate held steady at 7.15 in Q3, up by just 12 bps year-over-year. The average sale price per sq. ft. rose by 5.9% year-over-year to $315, signaling that buyers and sellers are finding common ground as interest rate volatility eases and investor demand for healthcare real estate assets strengthens.

Top MOB Markets by Vacancy Rate & Investment Volume

Note: Arrows indicate year-over-year change.
Source: CBRE Research, Q3 2026.

 

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