JLL’s new 2025 Medical Outpatient Building Perspective reveals the key trends shaping outpatient growth, including the accelerating move toward outpatient care, rising occupancy, limited construction for purpose-built MOBs, steady rent growth, demographics driving expansion in Sunbelt markets and medical buildings offering continued stability for investors and health systems. Highlights of the report include:
Health systems, corporate medical groups lead outpatient shift
The site-of-care shift from inpatient to outpatient will continue as technology and patient preference is driving advances in medical care, making treatments less expensive, safer and less invasive. Health systems led construction starts in 2024, accounting for 53% of total square footage and a significant increase from just 43% in 2019. Healthcare providers, especially those offering low- to mid-acuity services, are increasingly exploring office and retail spaces near patients or hospitals due to limited MOB availability, despite conversion challenges for high-acuity services or resource-intensive services like imaging.
Sunbelt population growth and established healthcare brands fuel market expansion
While Sunbelt markets are seeing significant growth due to population shifts, the report details strong performance in markets like Boston, Massachusetts and northern New Jersey that benefit from the presence of established, growing health systems with strong brand recognition, which can support growth through fundraising and attract high-value specialties.
Future perspectives
The report also provides insights on the future perspective of the MOB market, including potential challenges and opportunities for developers, health systems, tenants and investors. Key considerations include the impact of changing healthcare delivery models, challenges posted by limited supply pipeline and the role of technology in shaping future healthcare real estate needs.
“Looking ahead, we anticipate continued evolution in the healthcare real estate sector,” said Cheryl Carron, chief operating officer, Work Dynamics Americas and president, Healthcare Division, JLL. “Factors such as the shift to home-based care, telehealth advancements, changing healthcare policies and demographics will all play a crucial role in shaping the design and demand for medical outpatient space. Stakeholders across the industry will need to remain agile and forward-thinking to capitalize on these emerging trends.”
