MOB Deal Volume Craters 71% to $272M in Q2 as Rates Squeeze M&A

For real estate investment analysts and portfolio managers, the MOB sector’s Q2 2026 numbers are a clear sign that the Fed’s rate stance is finally breaking through. With dollar volume down 71% sequentially and the average deal size shrinking, the healthcare property M&A market is signaling a valuation reset—and the biggest buyers are picking up assets at what may become bargain prices.

Medical outpatient building (MOB) merger and acquisition activity declined sharply in the second quarter of 2026, with 51 publicly announced transactions, a 26% drop from the 69 deals recorded in the first quarter. Year-over-year, the decline was 22% compared with the 65 deals in Q2 2025, according to data from healthcare research firm LevinPro HC. The numbers reveal a significant cooling in a segment that had previously shown resilience despite broader commercial real estate headwinds.

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Disclosed spending across just 13 deals (down from 34 in Q1) totaled only $272.1 million, a 71% plunge from the $927 million announced in the prior quarter.

The dollar volume collapse was even more dramatic. Disclosed spending across just 13 deals (down from 34 in Q1) totaled only $272.1 million, a 71% plunge from the $927 million announced in the prior quarter. The average disclosed deal size also contracted, from approximately $27.3 million in Q1 to $20.9 million in Q2, suggesting that sellers are accepting lower valuations or that larger assets are staying off the market. Lincoln Property Company’s acquisition of three properties totaling over 291,000 square feet across California, Colorado, and Texas was the largest deal by price, underscoring that well-capitalized players can still execute, but the broad participation has thinned.

The concentration of activity among a handful of acquirers reinforces the cautious tone. Montecito Medical Real Estate alone accounted for 13 of the 51 deals, encompassing 539,614 square feet nationwide. Remedy Medical Properties and Woodside Health tied for second with three deals each. This dominance by a few firms highlights that while some investors see long-term value in outpatient real estate, many others are sidelined by the elevated cost of capital. Avery Swett, Associate Editor at LevinPro HC, attributed the slowdown to “caution in the capital markets and the current interest rate environment,” which have reduced both deal count and dollar volume across the board.

Geographically, M&A activity clustered in states with strong demographic and healthcare demand. Georgia led with six deals (approximately 12% of the total), followed by Texas with five and Florida with four. These Sun Belt states continue to attract healthcare real estate investment due to population growth, physician-friendly regulatory climates, and expanding ambulatory surgery and imaging volumes. The trend suggests that while overall volume is down, the deals that do close are concentrated in high-growth, high-demand regions.