Medical office building, also known as MOB is a well-known concept in commercial real estate. It has an increasing demand in the market. Investors are feeling more comfortable investing in this field.
Long-term tenancy
Medical offices that rent Commercial real estate are especially beneficial for the property owners as they tend to stay for the long term. Medical offices are known for their health service to people. So, it lasts for a long time if there is no bigger issue on the horizon. The vacancy for medical offices is consistently lower in CRE than in other sectors.
Growing investor demand
Due to the long-term lease and other facilities, investors are more interested to invest in this particular field. This makes the market for medical offices taking lease more competitive. Also, MOB has shown resistance in various ways. This resistance makes the office stay in the rented place for longer. Many companies cannot fight the issue that the MOB can. So, investors are shifting their focus to these issues.
Demand for health care
As the population increases and medical science develops, people need more medical attention than ever. So, the need for commercial real estate is growing every year. From 2005 to 2016, the number of medical centers increased by more than 50%. Moreover, the trend is not slowing down soon.