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Transactions increased even though both the quarterly and annual cap rates rose to 7.05%

But don't expect a sudden additional buildout of medical offices.

Investors have come to appreciate the recession-resistant returns offered by healthcare real estate.

The buildup is in primary markets, Class-A properties, and urban areas.

It is taking longer than normal to complete construction for both garden and mid-rise buildings.

The key question is what will happen in the first half of 2024 when supply levels peak

The combination of impact on landlords and structural changes in office makes understanding the risk much harder.

The average deliveries over the next five years are less than half of what we saw in 2023.