Chapter 5
Market Fundamentals
U.S. Healthcare & Life Sciences Capital Markets
2 Minute Read
Looking for a PDF of this content?
Question 26
Where would you project annual growth for medical office lease rates in the coming year?
Investors and developers continue to believe that healthcare rental rates will grow at a tenable rate, with the majority of investors (73%) anticipating an annual rent growth of 2%-4%. Despite economic headwinds and record inflation, less than 5% of respondents believe rental rates will be negative or grow faster than 4%. This is evidence of investor confidence in the stability of the healthcare real estate sector.
Figure 33: Projected Rent Growth 2023
Source: CBRE U.S. Healthcare & Life Sciences Capital Markets Investor & Developer Survey Results 2023.
Question 27
How does the occupancy of your medical office portfolio compare to a year ago?
While commercial real estate capital markets were disrupted in the second half of the year by rising interest rates, fundamental healthcare sector performance was largely unaffected, with 65 of respondents stating that their medical office portfolio occupancy is the same compared to the previous year. Some 29% of responders indicate that occupancy is higher while only 6% state that their portfolio occupancy is lower than last year. Despite higher costs of capital due to rising interest rates and declining stock prices, the fundamentals behind the healthcare sector remain strong.
Figure 34: Healthcare Portfolio Occupancy Year-over-Year
Source: CBRE U.S. Healthcare & Life Sciences Capital Markets Investor & Developer Survey Results 2023.
Related Services
- Industry
Healthcare
Create better patient outcomes and healthier communities through our total lifecycle real estate and facility solutions for the global healthcare indu...
- Property Type
Life Sciences
We provide the life sciences industry solutions that maximize facility and investment performance across labs, manufacturing space and critical enviro...
U.S. Healthcare & Life Sciences Capital Markets Investment Properties
U.S. Healthcare & Life Sciences Capital Markets Debt & Structured Finance
Insights in Your Inbox
Stay up to date on relevant trends and the latest research.