Every market in the corporate landscape is governed by economic, social, and political trends – and the medical real estate market is no exception.
At HBRE, we work exclusively in the medical real estate market, so we understand the landscape and make it our priority to stay continuously up-to-date on the latest trends.
In this article we provide a brief overview of the medical office building (MOB) market’s value and some of the top trends we’re noticing as we move into 2023.
Medical Office Building Market Value
In the first quarter of 2022, medical office building (MOB) sales topped $3.3 billion, and the market remains strong as we move forward in 2023.
Several factors are driving this growth in demand for MOBs. One major factor is an aging population; with more people living longer, there is an increasing need for healthcare providers and services. Additionally, advancements in technology have enabled healthcare organizations to offer more services onsite or remotely—which means they may need larger facilities or multiple locations instead of relying on one large hospital or health system alone. Finally, many healthcare providers are looking at ways to reduce costs while still providing quality care; MOBs provide a way to do both without having to make major investments into existing infrastructure.
Medical Office Building Trends
To kickstart a successful new year, we’ve prepared a list of MOB trends healthcare providers need to know moving into 2023.
Sustainability
Sustainability has long been a focus of the healthcare market as the world faces struggles with diminishing resources.
With the price of energy rising to record highs, healthcare providers now face another incentive to reduce their energy usage and explore alternatives to fossil fuels.
As a result, we expect to see increasing numbers of physicians, hospitals and medical office real estate providers exploring sustainable solutions such as solar panels and wind power. These solutions will help companies in the medical market reduce their costs and highlight their commitment to the environment.
Outpatient Care
Following the pandemic and the ensuing healthcare crisis it caused, many healthcare providers are now shifting focus towards outpatient and in-home care.
This change will affect the way healthcare providers offer their services. There will be greater emphasis on diagnostic tests and medical care that doesn’t require an overnight stay. As a result, hospitals and healthcare providers are focusing less on wards and beds and more on waiting rooms and short-term treatment spaces. One indication of this is that in 2020, and perhaps for the first time ever, outpatient facilities covered roughly the same square footage that inpatient facilities covered.
This could pave the way for downsizing or major adaptations for many medical properties, particularly those occupied by community healthcare providers.
Increased Efficiency
Thanks to the rising cost of living and increased pressure on the U.S. healthcare system, companies and service providers will need to improve efficiency to ensure that they meet the needs of their service users and company stakeholders.
That means finding ways to optimize medical office building property management, reduce costs, and streamline efficiency. The best way to approach this is to work with a healthcare real estate firm that understands the needs of the market.
HBRE is a unique team of CRE professionals who exclusively support the healthcare market. As a result, our experts are able to help healthcare providers, hospitals, solo practitioners, investors, and others understand and adapt to the latest medical office building (MOB) market trends.
If you’re looking to adapt your medical office building and create the perfect medical office building that benefits your staff and patients, then we invite you to get in touch with our team.
About HBRE
Headquartered in Nashville, Tennessee, HBRE is a full-service commercial real estate firm specializing in healthcare real estate. With over 50 years of combined industry experience serving 28 states across the U.S., we deliver exclusive healthcare solutions so you can provide the best patient care.
