As uncertainty persists in the U.S. economy, CRE investors are increasingly turning to healthcare real estate, specifically medical office buildings (MOB). This asset class has long been viewed as a safe harbor for investors due to its consistently high occupancy, predictable revenue streams, and limited volatility. Over the last year, it has gained momentum as a preferred asset class.
Building on this momentum, Tim Cajka, Vice President in the San Diego office and head of Voit’s Health+ Real Estate Advisors group, explains, “Healthcare is really no longer viewed as a niche property type. It’s really become a core investment sector,” citing an aging population and ongoing transition towards outpatient care as driving factors. “The bottom line is that healthcare delivered to consumers continues to be sticky and stable, and that’s why investors are really starting to look at relocating capital into healthcare real estate.”
In a recent market report, Partners Valuation Advisors stated that transaction volume began to pick up in the second half of 2025 and continued into 2026. “Greater capital markets stability, narrowing bid-ask spreads, and the re‑emergence of portfolio‑level transactions signal a market that has regained pricing clarity and is re‑engaging with discipline,” the report states. “Medical office and specialty healthcare assets remain central to investor interest, supported by long‑term demographic demand and resilient operating performance…Medical office buildings continue to be the most sought‑after healthcare asset type, supported by consistently high occupancy, mission‑critical tenancy, and strong alignment with the ongoing shift toward outpatient care.”
In a May article, healthcare real estate data provider RevistaMed reported that $16.3 billion in MOBs traded over the past 12 months—the highest since 2Q23. RevistaMed tracks transactions of 7,500 SF or more. The sales comprised 47 million square feet of MOB buildings. Notably, 18 million square feet came from a $7.2B portfolio deal by Remedy Medical Properties and Kayne Anderson Real Estate. They acquired 296 MOB properties from Welltower last fall. Even with that massive outlier transaction, $6.7 billion in single-property deals were recorded. RevistaMed reports steady growth since mid-2024, aligning with pre-pandemic levels. One notable sale in January was Santa Clara County’s $340 million purchase of the recently constructed 230,000-square-foot Valley Health Center San Jose from a joint venture between developer PMB and Harrison Street Real Estate Capital.
The SoCal MOB Market
Cajka says there are three groups driving transaction volume for MOB properties in Southern California: institutional investors, healthcare systems, and private groups, including owner-users. “Institutions are leaning heavily on MOBs, and they’re influencing the market in a positive way,” he says, noting that the Remedy/Kayne Anderson deal (the largest MOB transaction ever) involved a dozen properties in San Diego alone. Institutional investors Harrison Street, Invesco, LaSalle, and CBRE Investment Management, as well as REITs such as Welltower, Ventas, and Healthcare Realty, are actively pursuing assets in the market. In March, Archer Property Partners, a Newport Beach-based real estate investment firm focused exclusively on healthcare-related real estate, acquired a three-building outpatient medical office portfolio in Orange County for $17.8 million.
The second group of buyers is healthcare systems, which have been especially active in SoCal markets. “In LA, it’s Cedars-Sinai, UCLA Health, and UCI Health in Loma Linda. In San Diego, it’s Sharp HealthCare, Scripps, Kaiser Permanente, and UC San Diego Health. It has to do with expanding their outpatient footprint,” says Cajka. In early 2025, UCLA Health acquired the West Valley Medical Portfolio, comprising 162,554 square feet across three medical office buildings in West Hills for an undisclosed price. The third group is composed of owner-users. Los Robles Health System went from a tenant to an owner last year, acquiring the 85,731-square-foot Thousand Oaks Surgical Hospital for $70 million.
The SoCal Snapshot
Southern California has nearly 90 million square feet of MOB inventory. All three markets saw positive year-over-year absorption, with occupancy above 92%. Each market also posted rent growth: LA/Orange County at $37.06, San Diego at $33.69, and Inland Empire at $28.43.
Like most U.S. markets, SoCal saw increased transaction volume for MOBs. Over the last 12 months, more than $820 million in assets changed hands. The Inland Empire had the largest percentage gain at 101.8% ($137M). San Diego increased 82.9% ($231M). Los Angeles/Orange County rose by 38.1% to $452M.
“Southern California medical office continues to outperform traditional office through stronger occupancy, positive rent growth, limited supply, expanding healthcare demand, and renewed investor activity,” says Cajka. “These trends position healthcare real estate as one of the most resilient and attractive sectors in commercial real estate today.”
For additional insights on the SoCal MOB market, contact Tim Cajka or another Voit Real Estate Services’ trusted real estate advisors.