The executive vice president of Wexford Technology + Science recently talked about post-pandemic development and how demand is reshaping real estate needs in the realm of cancer-related R&D and treatment.
Demand for the medical office sector remains high and the tenant base is stable, leading to healthy interest from real estate investors. Known for its stability and resistance to recessions, the sector set record highs for asking rents in 2021 as vacancies decreased—a trend that is expected through the next year and beyond.
Marcus & Millichap predicts that medical office vacancy will decrease to 9.2%, down 20 basis points and 40 basis points above pre-COVID levels. Meanwhile, the firm predicts rent growth in the neighborhood of 2.5% to an average of $22.61 per square foot,