By Erik Hill, MAI, CRE, CCIM, MRICS, Managing Director at Partner Valuation Advisors, published Sept. 29, 2025, in GlobeSt.com
As the broader commercial real estate market continues to navigate economic headwinds, the healthcare market sector has quietly charted a course of resilience and growth. Healthcare real estate has demonstrated a unique ability to adapt, driven by rising demand, strategic investor interest, and a shifting landscape of care delivery.
In the second quarter of 2025, one of the most notable trends in healthcare real estate was the continued decline in new construction volume. At the same time, absorption rates increased, pushing national occupancy averages above 92%. This dynamic created a tightening market, where existing facilities saw increased utilization and investor interest.
Hospitals and health systems, along with private investors, emerged as the dominant buyers in the sector during the first half of the year. In contrast, REIT activity was relatively muted — a departure from previous years when institutional capital played a more prominent role. This shift underscored a growing confidence among operators and private capital in the long-term viability of healthcare assets.
In this latest GlobeSt article, Erik Hill gives an update on the Healthcare market sector.
