1、ResearchUnited States| care means steady occupancy and growing interest for investment in the sectorMedical Outpatient Building PerspectiveKey findings2Medical Outpatient Building Perspective1Setting the stage:Whats driving demand?Demographic trends,technology and reimbursement changes are continuin

2、g the shift toward outpatient care,driving demand for outpatient medical buildings.Growing specialties are taking a more holistic view of lifelong health and wellness.2Fundamentals:Occupancy climbs due to steady demand and limited constructionWith the shift,demand for outpatient medical space is ste

3、ady,but rising financing costs have limited construction,pushing overall occupancy and rents upward.3Rising construction costs are creating challenges for occupiers and ownersHealth systems and providers face thin margins,so they are seeking to limit out-of-pocket costs associated with new space.Lan

4、dlords also face rising costs for maintenance and renovation.4Population and employment driving market growthSun Belt markets are seeing high rates of population growth,which in turn will drive increased outpatient volumes in those regions.5Capital markets:Slow transactions but opportunity aheadTran

5、saction volumes for outpatient medical dropped in 2023 due to financing challenges but will pick up once interest rates stabilize,as the sector is in favor with investors seeking stability.For investors Transaction activity remains slow early in 2024,but we expect activity to increase throughout the

6、 year.Cap rates have risen 100-150 bp since Q4 2022,creating more value opportunities for well-capitalized buyers less sensitive to debt and high interest rates.Fundamentals remain strong and construction starts remain slow,positioning medical outpatient buildings(MOBs)for increasing occupancy and r