Medical Office Real Estate
Medical office real estate offers consistent, recession-resistant returns for long-term investors. Breakwater Exchange brings clarity and structure to this essential asset class.
Medical Office Real Estate Investment Recommendations
At Breakwater Exchange, we view medical office buildings (MOBs) as one of the most resilient commercial real estate sectors. From specialty clinics to full-service health centers, MOBs provide the physical infrastructure for essential care that cannot be outsourced or paused. These properties are tied to long-term leases, high-credit tenants, and steady patient traffic. Understanding the distinctions between each class helps investors align with the right opportunity:
Class A Medical Office
These are new or recently developed buildings of the highest quality, located adjacent to major hospitals. Typically managed by healthcare REITs, they attract institutional tenants and offer long-term lease stability.
Class B Medical Office
These well-maintained mid-rise buildings are often located near hospital campuses and owned by physicians or private investors. Class B MOBs offer flexibility and reliable tenant occupancy at more accessible investment levels.
Stand-Alone Medical Office
Custom-built for single or group practices, these properties are often owner-occupied or closely managed. Stand-alone MOBs allow for specialized tenant use and long-term relationship-driven leasing strategies.
Discuss Medical Office Investment Strategies With Breakwater Exchange
Get in touch with our team today for an analysis or portfolio review. We’ll provide 1031 exchanges or tax strategies tailored to your healthcare-focused property goals.
Reasons Medical Offices Strengthen Portfolios
- Medical office real estate offers a unique blend of durability, demand, and diversification. Here are three key reasons why Breakwater Exchange recommends this asset class to our investors.
- The healthcare industry is recession-resistant. Patients need care regardless of the economy. Breakwater Exchange helps investors find stable MOBs in high-demand areas to ensure long-term occupancy and consistent income.
- MOBs can house urgent care centers, dentists, labs, outpatient services, and more, reducing vacancy risk. We help match investors with properties offering diversified, income-reliable tenant mixes that support one another within the same facility.
- America’s aging population is driving demand for outpatient healthcare services. Breakwater Exchange identifies markets where population trends, healthcare needs, and property performance align.
FAQs About Medical Office Real Estate Investing
Are medical offices eligible for a 1031 exchange?
Yes. Breakwater Exchange regularly helps investors exchange into MOBs using traditional DSTs , direct title solutions , or cash out DSTs , each structured for IRS compliance and income preservation.
How long are typical leases for medical tenants?
Many leases range from 7 to 15 years due to customized build-outs. Breakwater Exchange sources properties with long-term agreements and stable tenant profiles to match your risk tolerance.
Can I diversify my exchange into multiple MOBs?
Absolutely. Through Breakwater Exchange’s sponsor network and platform , we can structure diversified portfolios of MOBs within a single exchange, tailored to geography, specialty, or lease structure.
More asset classes
Industrial Real Estate
At Breakwater Exchange, we help investors tap into the industrial real estate sector with strategic tax-advantaged structures and expert guidance.
Read moreMulti-Family Property Investments
Multi-family real estate continues to be one of the most resilient and scalable asset classes in today’s market. At Breakwater Exchange, we help investors take a thoughtful, strategic approach to maximizing its full potential.
Read moreSelf Storage Real Estate Investments
Self-storage has emerged as a resilient and adaptive asset class in real estate. Breakwater Exchange connects investors to the sector’s most strategic opportunities.
Read moreFree 1031 proposal
Access Investment Offerings Other Brokers Can’t Provide
Breakwater Exchange’s expert guidance helps you maximize returns while minimizing tax exposure, so you can invest with clarity and confidence.
- years of experience
- 20+
- in DST transactions
- $1B+
- states licensed
- 50
- vetted national sponsors
- 8