Why Medical Office Buildings Are the New Core Real Estate Asset cover art

Why Medical Office Buildings Are the New Core Real Estate Asset

Why Medical Office Buildings Are the New Core Real Estate Asset

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Episode 87 of The Business of Real Estate with Fexingo examines why medical office buildings have become a sought-after institutional asset class in 2026. Lucas and Luna break down the demographic tailwinds — aging Boomers and Gen X hitting peak healthcare consumption — and the structural shift from hospital-owned clinics to third-party outpatient facilities. They analyze a specific case: a $120 million portfolio of on-campus medical offices in suburban Phoenix that traded at a 5.2 percent cap rate last quarter, well below the 7.5 percent average for traditional office. The hosts explain how non-discretionary demand, long-term leases with built-in rent escalators, and high tenant improvement costs create a moat against both economic cycles and remote work trends. They also touch on the rise of medical office REITs and the risks around Medicare reimbursement policy. If you want to understand why healthcare real estate is outperforming every other commercial property type this decade, start here. #MedicalOfficeBuildings #HealthcareRealEstate #DemographicTailwinds #AgingPopulation #OutpatientCare #CapRate #PhoenixRealEstate #CommercialRealEstate #REITs #TenantImprovement #NonDiscretionaryDemand #RealEstateInvesting #PropertyTypes #InstitutionalInvestors #BusinessPodcast #FexingoBusiness #RealEstateStrategy #InvestmentProperty Keep every episode free: buymeacoffee.com/fexingo
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