U.S. MOB vacancy rate up to 8.6% in 2020

The U.S. vacancy rate for medical office buildings (MOB) stood at 8.6 percent at the end of 2020, up from 7.8 percent at year-end 2019, according to Colliers. This compares favorably to the overall office sector vacancy rate of 13.2 percent.

Half of the 10 leading U.S. markets ended 2020 with vacancy rates lower than the U.S. average, and though rent growth remained below 3 percent throughout the top 10, all of the major markets posted positive rent growth year-over-year. Rent growth in 2020 was most robust in two markets where vacancy remained low (Los Angeles) or contracted (Miami). Boston and New York tied for the lowest MOB vacancy across the major markets, with their vacancy rates standing at 6.4 percent at the end of the year. Chicago has the lowest asking rates among the top 10 at $19.76 per square foot, and its vacancy rate dropped significantly over the year to 8.6 percent. While Miami’s vacancy rate grew to 9.5 percent from 6.2 percent in 2019, it led the top 10 m