Cushman & Wakefield (NYSE: CWK) released its 2026 Vital Signs report today, signaling continued strength across the medical outpatient sector driven by surging healthcare demand, an aging population and an ongoing shift toward outpatient care.
According to the report, fundamentals remain exceptionally strong, with demand significantly outpacing supply. In the first quarter of 2026 alone, medical outpatient building absorption reached 3.8 million square feet, up 71% year-over-year, pushing occupancy to 92.5% across the top 50 U.S. markets.
“Medical outpatient buildings (MOBs) continue to demonstrate resilience and long-term appeal,” said Lorie Damon, Executive Managing Director, Healthcare Advisory Practice at Cushman & Wakefield. “With healthcare delivery rapidly shifting toward outpatient settings and new construction lagging, we’re seeing sustained occupancy gains and consistent investor interest across both core and secondary markets.”
Healthcare Trends Drive Demand
Powerful macro trends are reshaping the sector, as healthcare spending has grown 5.8% annually over the past decade, further fueled by demographic change. The U.S. population aged 65 and older is expected to grow by nearly 11 million over the next decade, driving sustained requirements for accessible, lower-cost outpatient care.
As such, outpatient services are expanding rapidly as greater numbers of clinical procedures move from inpatient venues into designated outpatient settings, many of which are community-based. Physician and clinical services spending is projected to grow 8.2% annually through 2033, significantly outpacing the projected costs of hospital-based care.
Rents Rise as Supply Lags
Limited new supply and strong tenant demand are placing upward pressure on rents. Average rents across the top 50 markets reached $26.64 per square foot, increasing 1.9% year-over-year. Growth is particularly pronounced in suburban and Sun Belt markets, including Florida, North Carolina and Texas, where population inflows and retiree migration are accelerating demand for outpatient facilities.
At the same time, new development remains constrained. Construction activity has declined 10% year-over-year and represents just 2.2% of existing inventory, reinforcing a persistent supply-demand imbalance.
Capital Markets Accelerate
Investor appetite for MOB assets remains robust. Investment sales totaled $1.8 billion in the first quarter of 2026, up 36% year-over-year, with rolling four-quarter volume reaching $9.8 billion, a 49% increase.
Cap rates have stabilized around 6.7%, and MOB total returns outperform other real estate sectors, supported by strong income returns and long-term stability.
“Investors are increasingly focused on the durability of healthcare real estate,” Damon added. “MOB assets offer stable income, strong occupancy and compelling long-term fundamentals, making them one of the most attractive property types in today’s market.”
With strong underlying demand drivers firmly in place, the MOB sector is well-positioned for continued growth in 2026 and beyond.
For more, read the report here.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.
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