How Medical Office Buildings Became a Core Real Estate Asset

Episode 58 of The Business of Real Estate with Fexingo explores why medical office buildings are now considered core institutional assets. Lucas and Luna break down the demographic tailwind of aging boomers, the recession-resistant lease structures, and the specific case of Healthcare Realty Trust (ticker H-R) merging with Healthcare Trust of America in 2022 to form a $13 billion portfolio. They discuss cap rate spreads versus traditional office, the impact of outpatient migration, and why private equity firms like Blackstone and KKR have poured billions into the sector since 2024. By mid-2026, medical office vacancy sits at around 9 percent nationally, roughly half the rate of general office. The episode also touches on the rise of on-site ancillary services and the risk of Medicare reimbursement changes. A sharp, data-driven look at a real estate niche that keeps delivering steady returns. #MedicalOfficeBuildings #HealthcareRealEstate #RealEstateInvesting #Demographics #BabyBoomers #OutpatientCare #HealthcareRealtyTrust #Blackstone #KKR #CapRates #RecessionResilient #InstitutionalInvesting #CRE #MOB #Business #RealEstate #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo