2024 Year End National White Paper

The healthcare commercial real estate sector entered 2025 shaped by a year of recalibration, strategic shifts, and transformative growth. Against a backdrop of persistent macroeconomic fluctuations, the industry demonstrated resilience by adapting to new financing structures, evolving healthcare delivery models, and an increasing emphasis on technology-driven efficiencies. While 2024 presented challenges such as inflationary construction costs and fluctuating interest rates, healthcare real estate remained a stronghold for investors due to its defensive qualities and demand-driven fundamentals. Medical Outpatient Buildings (MOBs) maintained their status as a recession-resistant asset class, bolstered by a steady influx of outpatient services and a broader shift toward decentralized care. The life sciences sector navigated a course correction, with investors prioritizing specialized laboratory spaces to support emerging advancements in biotech and pharmaceutical research. Meanwhile, Ambulatory Surgical Centers (ASCs) benefited from expanding reimbursement policies, allowing for a broader range of procedures to be performed in cost-efficient outpatient settings.