Sales of U.S. healthcare real estate rose 77% on a trailing 12-month basis in the second quarter of 2026, Avison Young reported. Meanwhile, net absorption reached 3.5 million square feet, continuing to exceed new deliveries, and occupancy rose to 92.4% while available space declined 4% year-over-year.

One metric that is down from a year ago is the development pipeline: off 10% from Q2 2025. “We’re seeing a market that is increasingly defined by quality and scarcity,” said Jay Johnson, managing principal and healthcare sector leader, Avison Young. “Demand for well-located medical outpatient buildings remains strong, but the shrinking development pipeline could further tighten conditions and support rent growth in the years ahead.”

Avison Young’s Q2 U.S. Healthcare Market Report highlights Houston, Los Angeles, Dallas, Chicago and Washington, DC as the nation’s most active healthcare leasing markets, while Los Angeles led investment sales activity during Q2. Rent growth is becoming more balanced across the quality spectrum, suggesting that demand is broadening beyond only the highest-quality assets, the report states.

Pictured: The Bedford Collection, an outpatient medical portfolio in Beverly Hills, acquired in April 2026 by Douglas Emmett.

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