Q1 2025 MEDICAL OFFICE UPDATE
- Colliers | Columbus
- May 5
- 1 min read
Written by: Collin Fitzgerald
Collin specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, Retail and Capital Market groups. He is responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis, and utilizing statistical information to predict future behavior in the market. Keep reading for his take on market trends in the Columbus multifamily sector.
Key Takeaways
Suburban Expansion: Mount Carmel Dublin, located at I-270 and Sawmill Parkway, celebrated it’s grand opening on April 12.
Occupancy Trends: Occupancy rates are now sitting 1% above national average. This reflects a general slowdown in new construction given the current combination of high interest rates and building costs.
Lease Rates: Average lease rates for healthcare properties in Columbus have increased year-over-year to $22.54/SF, though they remain below the national average. The combination of limited new supply and growing demographics continues to keep upward pressure on rents.
Insurance Uncertainty: From the tenant side, we have seen a notable slowdown in deal activity for practices with a significant Medicaid or Medicare base given uncertainty in those markets. Private equity valuations for behavioral health platforms show a preference for geographic diversification and healthy insurance mixes.
Check out the full Q1 2025 Medical Office Trends report here!
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