Healthcare Real Estate Outlook: Key Trends Shaping the Rest of 2025

As we head into the final stretch of 2025, one thing is clear: healthcare real estate continues to stand out as one of the most resilient and opportunity-rich sectors in commercial property. The demand drivers are strong, investor confidence is returning, and providers are reshaping the way they use space. For those of us active in this niche, the next few months will be key to positioning ourselves—and our clients—for growth.

Outpatient Growth Keeps Driving the Market

Hospitals remain essential, but the real expansion is happening in outpatient care. Patients want convenience—shorter visits, accessible locations, and parking right out front—and providers are following their lead. Outpatient volumes are projected to climb by double digits over the next five years.

That demand translates directly into strong absorption for medical office buildings (MOBs) and ambulatory surgery centers (ASCs). For owners, it’s stable occupancy; for investors, it’s a sector tied to demographic tailwinds that aren’t slowing down anytime soon.

The Patient Experience Is a Real Differentiator

It’s no longer just about square footage. Providers are competing on experience. Build-outs today feature spa-like waiting rooms, digital check-in kiosks, and thoughtful layouts that cut down patient anxiety.

For landlords, these improvements help justify higher rents and keep tenants anchored longer. As brokers, they make for a compelling story when marketing space.

Technology Is Reshaping Space Needs

Telehealth and AI haven’t replaced in-person visits, but they’ve definitely reshaped demand. Flexible, modular spaces are gaining traction—think plug-and-play clinical suites and even medical coworking models.

Owners who can deliver buildings wired for technology and adaptable to shifting care models will have a leasing advantage.

Capital Markets: Momentum Is Building

After a slow 2023–24, we’re finally seeing capital loosen. Interest rate cuts are expected to help unlock more deal flow, and some projects that were shelved are back on the table.

Cap rates have risen slightly, and underwriting remains disciplined, but healthcare’s strong fundamentals continue to attract buyers. Investors are choosy—but they’re definitely shopping.

Looking Ahead

As we close out 2025, a few themes stand out:

• Outpatient assets are leading the way.

• Patient experience equals tenant retention.

• Flexibility and tech-readiness will lease faster.

• Capital is flowing back—but smart pricing is key.

Healthcare real estate isn’t just a safe harbor—it’s a growth story. For investors, owners, and brokers alike, the rest of this year is about staying ahead of these trends and capturing opportunities as they come.

Interested in exploring opportunities in healthcare real estate? Whether you’re considering acquisitions, development, or repositioning assets, let’s connect. I’d be glad to share market insights, evaluate your options, and help you position your portfolio for growth.