Jan 2025
What’s driving medical outpatient building demand in 2025?
In 2025, the aging American population, increased health care spending, and transformative technologies will determine the demand for U.S. health care real estate, according to the CBRE 2025 U.S. Healthcare Real Estate Outlook. One area that is perfectly poised to benefit from these drivers is the medical outpatient building (MOB) sector.
How the aging population requires and spends more on health care
MOBs have become more and more popular because of their locations outside of traditional hospital campuses. They’re typically located near residential areas, making them easier for patients — especially senior patients — to access. Metropolitan areas with a fast-growing senior population will need more infrastructure like MOBs to accommodate this demographic’s rising health care needs.
Although the 65-and-over population only accounts for 17% of the total population, this cohort represents 37% of health care spending. That spending only increases as patients get older.
CBRE’s report found that health care spending per capita for Americans under 64 averages about $8,000 and rises to more than $35,000 for those over 85. This high spending in the latter group is of particular note because that segment is expected to grow by 56% by 2034.
Also, thanks to technological advances in medicine, more and more procedures are being performed in MOB settings, including surgeries. When you pair a lower price point with a convenient location, procedures at hospitals are becoming less attractive to patients.
