Sales Of U.S. Healthcare Real Estate Rise 77% Year-Over-Year

The U.S. healthcare real estate market continued its strong momentum in the second quarter of 2026, fueled by rising investment activity, healthy leasing demand and a tightening supply of available space.

Healthcare real estate sales climbed 77% over the past 12 months compared with the same period a year earlier, according to Avison Young. At the same time, the sector absorbed 3.5 million square feet of space during the quarter, with tenant demand once again outpacing new property deliveries.

The continued imbalance between demand and new supply pushed occupancy to 92.4%, while available space declined 4% year over year, underscoring the resilience of the healthcare property sector. One area showing a slowdown is new development. The construction pipeline shrank 10% from the second quarter of 2025, signaling fewer medical properties are being built even as demand remains elevated.

“We’re seeing a market that is increasingly defined by quality and scarcity,” said Jay Johnson, managing principal and healthcare sector leader at Avison Young. “Demand for well-located medical outpatient buildings remains strong, adding that the declining development pipeline could further tighten market conditions and support rent growth in the coming years.”

Avison Young’s second-quarter U.S. Healthcare Market Report identified Houston, Los Angeles, Dallas, Chicago and Washington, D.C., as the country’s most active healthcare leasing markets. Los Angeles also led the nation in healthcare real estate investment sales during the quarter.

The report found that rent growth is becoming more evenly distributed across healthcare properties, suggesting tenants and investors are expanding their focus beyond only the highest-quality assets as competition for space continues to intensify.

Source: connectcre