Stokley CRE Intelligence · Asset class
A structured view of the developments shaping medical office, and the situations those developments may create for owners, lenders and investors.
In short
Medical office is one of the steadiest corners of commercial real estate in 2026. Avison Young put healthcare occupancy at 92.4% in Q2 2026, and CBRE reported record average medical office asking rents of $25.46 per square foot with a fifth straight quarter of positive demand. With little new construction, well-located buildings are scarce, but older, partly vacant or single-tenant buildings still run into financing gaps.
Current signals
92.4%
Avison Young · Q2 2026
$25.46
CBRE · record high · Q2 2026
5
CBRE · 1.18M SF absorbed in Q2 2026
2.7M SF
CBRE · 59 markets · Q2 2026
Sourced market view · 01
Demand keeps outpacing new supply. CBRE counted 1.18 million square feet of net absorption in Q2 2026, the fifth straight positive quarter, with record average asking rents of $25.46 per square foot and just 2.7 million square feet under construction across the 59 markets it tracks. Avison Young reported 3.5 million square feet of healthcare net absorption in the quarter and occupancy of 92.4%.
Sourced market view · 02
Capital came back. CBRE reported medical office investment volume of $2.7 billion in Q2 2026, up 24% year over year, bringing the trailing-four-quarter total to $14.4 billion. The pipeline, meanwhile, stayed thin, so the gap between well-located buildings and everything else has widened.
Sourced market view · 03
Care keeps moving out of hospitals and into outpatient buildings closer to patients, and an aging population adds demand. That supports the sector, but a strong average hides wide differences. Older buildings, buildings with a large tenant leaving, and single-practice buildings where the owner is also the tenant can still struggle to refinance on time, especially when a lender lumps them in with traditional office.
Stokley analysis
We underwrite medical office as its own asset, not as office. We look at the tenant mix and lease terms, whether a health system anchors the building, how specialized the buildouts are and what it would cost to re-lease a suite, parking and access, and the building's condition. A well-located building with one vacancy or a near-term lease rollover can be a good real estate loan, even when a bank wants the lease signed first.
Opportunity lens
Buildings with a maturity coming up and a large tenant renewal or vacancy still being resolved.
Physician groups selling to a health system, partner buyouts, or owner-users moving out, where the real estate needs a bridge.
Suites to rebuild for new medical users, or older buildings being brought up to what outpatient tenants now expect.
Evidence
Questions answered
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