Medical Office Building sales task slows in 2025
The initial half of 2025 highlights a shifting investment landscape for Houston’s medical office complex (CROWD) industry– one noted by decreased offer flow, pricing stress and careful capitalist activity– yet still anchored by considerable sell prime locations.
Crowd investment task slowed with both the number of purchases and total sales quantity decreasing from the speed set in 2024 The first half of 2025 videotaped simply 18 sales amounting to $ 113 3 million, representing a 53 2 % drop from the 26 sales worth $ 242 4 million closed throughout the very same period in 2024 When measured against the 2nd half of 2024– when 22 sales produced $ 266 5 million– the present totals show a 57 5 % decline in buck volume, emphasizing the market’s cooling energy.
Prices trends further highlight this pullback. The ordinary prices per square foot cleared up at $ 170 in the first half of 2025, falling 34 4 % from the $ 259 ordinary videotaped at the end of 2024, and down 46 7 % below the $ 319 ordinary just one year earlier.
While rates pulled back, capitalization rates rose and fall and ranged in between 6 5 % and 7 4 % throughout the past 18 months. This movement shows both transforming investor sentiment and more comprehensive capital market modifications.
Despite the total downturn, numerous deals signified continued need for high quality possessions. Among the most remarkable:
- Lonza Houston acquired Pearland Kirby Medical Plaza, a three-story, 44, 579 -square-foot facility at 15015 Kirby Drive in Pearland. The worldwide biopharmaceutical maker also demonstrated its long-lasting dedication to the location by restoring its 276, 770 -square-foot lease at 14905 Kirby in late 2024
- Healthcare Realty Trust fund offered Cypress Terminal Medical Building, a 52, 040 -square-foot, three-story residential or commercial property at 1140 Cypress Station Drive, which was acquired by an exclusive investor.
- Capital Realty Group increased its Houston footprint with the acquisition of Houston Medical Facility, a 10 -story, 126, 906 -square-foot structure at 6655 Travis Road, likewise bought from Health care Realty Depend On.