2H25 National Report: Medical Office Sales Surge, Construction Slows
- The Vara Group
- Aug 15
- 1 min read
Private investors are seizing opportunities in the medical office sector as construction activity cools. This Medical Office National Report explores the trends shaping investment strategy for the second half of 2025.
🔹 Completions Fall 1M SF Below Avg., with 50% Concentrated in 3 States
🔹 Private Investors Drive 40% Sales Surge, Targeting Sub-$10M Assets
🔹 65+ Population Growth Drives Demand, 10% Increase Expected Over 5 Years
Vacancy holds at 9.2% nationally, supported by long-term leases and an expanding senior population. As large-scale development eases, CRE strategy is shifting toward value-add and stability-focused assets.
