Q3 2025 MEDICAL OFFICE UPDATE
- Colliers | Columbus
- 2 days ago
- 1 min read
Written by: Jake Lord
Jake specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, and Retail 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 Jake’s insights on the Columbus medical office market in Q3 2025.
Key Takeaways
Health System Expansions: OhioHealth and The Ohio State Wexner Medical Center are leading the growth of healthcare facilities in Columbus. OhioHealth is expanding its campuses at Grant Medical Center and Riverside Methodist Hospital. Ohio State’s new inpatient tower and outpatient care center in Powell are both expected to open in 2026.
Occupancy Trends: Occupancy rates are now sitting 3.0% 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 decreased year-over-year to $22.04/SF and remain below the national average. Indeed, local lease rates have fallen nearly $3.00 in the past two quarters, possibly due to increased supply.
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 Q3 2025 Medical Office Trends report here!