MOB Investment Activity Ticks Up in Q4

U.S. Medical Outpatient Buildings | Q4 2023

March 6, 2024 2 Minute Read

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Executive Summary

  • Medical Outpatient Building (MOB) investment volume increased by 15% quarter-over-quarter in Q4 2023 to $2.0 billion, bringing the full-year total to $7.1 billion.
  • MOBs traded at an average of $287 per sq. ft. in Q4.
  • Los Angeles was the top market for MOB investment in 2023 with $448 million, followed by Washington, D.C. with $425 million and Atlanta with $406 million.
  • Average MOB triple-net asking rent increased by 0.4% year-over-year to $23.66 per sq. ft.
  • Net absorption of 2.2 million sq. ft. in Q4 brought the full-year total to 6.6 million sq. ft.
  • Houston was the top market for MOB absorption in Q4 with 780,000 sq. ft., followed by Chicago with 500,000 sq. ft. and Minneapolis with 270,000 sq. ft.
  • The 60 largest U.S. MOB markets had a combined 9.6 million sq. ft. of inventory under construction as of Q4.