MOB Investment Rises In Q3 2025 Amid Record-High Rents

Medical outpatient building (MOB) investment activity rose sharply in Q3, with volume up 27% quarter-over-quarter to $2.7 billion, bringing the trailing four-quarter total to $9.4 billion.

MOBs sold for an average of $298 per sq. ft., a 51% premium over traditional office properties at $197 per sq. ft.

The average MOB capitalization rate edged down 6 bps from the previous quarter but increased 2 bps year-over-year to 7.0%.

Washington, D.C. led all markets in trailing four-quarter MOB investment volume at $559 million, followed by Phoenix at $414 million and Dallas at $407 million. Average asking rents held at a record $25.20 per sq. ft. in Q3, up 0.5% from a year earlier.

The sector posted 624,000 sq. ft. of positive net absorption—its second straight quarter of rising demand. Across 59 markets, 2.4 million square feet of MOB space was under construction in Q3, with the largest pipelines in Dallas, Phoenix and Philadelphia.

Source: CBRE News