CalculateRealEstateROI

Strategy

Medical Office Building (MOB)

Specialized commercial asset class leased to healthcare tenants — recession-resilient long leases.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Sticky tenancy

Buildouts expensive; tenant retention near 90%.

Demographic tailwinds

Aging population drives demand.

Examples

  • $8M MOB, 6.5% cap, 70% leased to multi-specialty practice.

Practical applications

  • Late-stage portfolio diversification.
  • Institutional partnerships.

Common mistakes

  • Underestimating tenant-improvement capex.
  • Outpatient migration ignored.