Marcus & Millichap

Medical Office Building Report

Second Half 2019

Special Research Report

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Demand for Healthcare to Intensify; Industry Consolidation Bolsters Capital Targeting Medical Office

Shifting demographics and growing need for outpatient care support medical office demand. An aging U.S. population and rising healthcare needs are bolstering the medical office sector, driving space demand as outpatient services gain in popularity. The 65 and older cohort will comprise 26 percent of the overall population in 2029, up from 15 percent in 2009, a substantial milestone as Americans in this age group require medical services nearly five times a year. Demand for medical needs is reiterated by the 2.7 percent healthcare services employment growth, the fastest of any employment subsector. The strong demand for medical services personnel is outstripping the labor pool. To combat shortages, healthcare businesses are favoring outpatient care as well as enhanced technology. These trends favor purpose-built medical office facilities.

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