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By Erik Hill, MAI, CRE, CCIM, MRICS, Managing Director, National Healthcare & Life Sciences Practice Lead
The healthcare real estate market is entering 2026 with a level of confidence it hasn’t seen in several years. After a long period of rate-driven hesitation, investors, lenders, and operators are collectively signaling that the cycle is shifting. At this year’s Revista Conference, where attendance was capped at 500 due to heightened demand and industry engagement, the message was clear: momentum is building.
Across the investor landscape, expectations point toward materially higher transaction volume in 2026 compared to 2025. Many believe the long-absent ‘portfolio premium’ has returned, especially for larger multi-asset packages where scale, diversified tenant mixes, and operational efficiencies create pricing advantages. Liquidity is gradually re-entering the system, narrowing bid–ask spreads and enabling deals to move with greater clarity and speed.
Capital markets sentiment is also improving as lenders begin to lower spreads into the mid-100s, roughly 150 basis points above SOFR, unlocking financing options that had been sidelined. This easing in credit conditions is particularly meaningful for healthcare, where acquisition financing, refinancing, and ground-up development have all been challenged by elevated borrowing costs.
Within the sector, two property types are gaining disproportionate traction: Inpatient Rehabilitation Facilities (IRFs) and Behavioral Health centers. Both categories are benefiting from deep demographic tailwinds, rising clinical demand, and limited existing supply. Funds are increasingly shifting toward these assets as part of their 2026 allocation strategies, viewing them as resilient, need-based investments that outperform across cycles.
Construction, however, remains a friction point. Costs continue to sit well above pre COVID norms, driven by labor constraints and material inflation. That being said, construction starts rose meaningfully in the second half of 2025 and are expected to continue climbing through 2026. Many developers are betting that sustained healthcare demand, paired with the easing of capital markets, will improve feasibility for new medical office buildings, IRFs, and outpatient facilities.
Despite cost pressures, operating fundamentals remain strong with nationwide occupancy holding in the low 90% range, reflecting stable utilization across markets. Rent growth continues to outperform many other commercial real estate categories, reinforcing the sector’s defensive posture and long-term income durability.
Perhaps the most telling signal of all: capital is returning. More funds, from institutional players to specialized healthcare investors, are allocating meaningful capital to healthcare real estate. The combination of improving liquidity, stable fundamentals, and renewed appetite for scale positions 2026 as a year of opportunity for owners, operators, and investors alike.
Healthcare CRE is entering a period where clarity, credibility, and confidence matter more than ever. For groups preparing to transact, refinance, or evaluate portfolio strategy, 2026 offers a window where market conditions and sector performance are finally moving in the same direction.
