High-Speed Cycles Require Long-Term Thinking

Beyond Market Volatility: ​Demographics Drive Long-Term Medical Office Growth​​

Rapidly Changing Economic Conditions Challenge Investors​

• Market data is becoming outdated faster than usual, making it harder to rely on traditional indicators​

• The latest economic forecasts for 2025 are already shifting, with major firms revising their projections.​

• Inflation data lags real-time changes, missing key cost increases like the 30% rise in steel prices​

Aging Population Is Driving Medical Office Demand​

• 11,000 people turn 65 every day, leading to a surge in healthcare service usage​

• Seniors visit the doctor 7.1 times per year on average, nearly double the rate of younger adults​

Medical Office Construction Is Slowing Amid Growing Demand​

• Only 8 million square feet of new medical office space was built in 2024, down from 14 million in 2023​

• Construction starts have declined sharply; rising labor and material costs could limit new development further​

​From 1Q 2025 through 4Q 2029​
Sources: Marcus & Millichap Research Services, U.S. Census Bureau, Moody’s Analytics ​

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