CBRE: Tri-State MOB markets attract $564M in investment
New York – CBRE announced that the medical outpatient building (MOB) markets in New York and New Jersey ranked among the top in the nation, demonstrating strong fundamentals in the second quarter of 2026 and year over year.
According to CBRE’s U.S. Medical Outpatient Building Report -- New York City ranks fourth among markets for medical outpatient building investment, recording $302.2 million in investment volume for the trailing four quarters ending Q2 2026, a 191% increase. During Q2 alone, the market generated $72 million in investment volume, more than triple the level recorded a year earlier. Combined, New York City and its suburbs on Long Island and New Jersey attracted $564 million for the four quarters ending in Q2.
Northern New Jersey was among the top three U.S. regions for net absorption on a trailing four-quarter basis. Additionally, Central New Jersey led all markets in Q2 construction completions, with 150,000 s/f.
“New York and New Jersey are among the nation's most dynamic healthcare real estate markets because of their massive, aging populations, high concentration of premier hospital systems, strong patient demand, and strict regulations that limit new supply,” said CBRE Vice Chairman Bill Hartman. " Investors seeking stable income-producing assets are attracted to the sector's resilient cash flows, strong long-term tenancy and ongoing demographic drivers as providers expand access to convenient outpatient services."
According to CBRE, New York City, Northern New Jersey, and Long Island all have vacancies below the national average of 9.8%. The tight vacancy places upward pressure on rents, especially in New York City where the average MOB rent of $48 psf is the highest in the country. Long Island has the eighth highest rents in the country at $32 psf.
Notable transactions in the region included the sale of 6025 6th Avenue Medical Condos in Brooklyn for approximately $33.8 million, equating to $1,329 per sq.-ft., one of the highest pricing metrics among reported MOB transactions nationally during the quarter. Additionally, the Horizon MOB Portfolio in Toms River, NJ traded for $13.6 million.
Nationally, MOB investment was up 24% from a year earlier at the end of Q2 at $2.7 billion, with asking prices of $307 per sq. ft. on average that were 57% higher than traditional office buildings. The vacancy rate was just under 10% nationally, with rents up 1.3% year over year at a record high average of $25.46 per sq. ft. in the 59 markets tracked by CBRE.
