May 2025: Medical Office Update

Cautious Optimism Amid Ongoing Volatility 

May brought another month of market hesitation. While early 2024 was dominated by concerns around tariffs and inflation, recent headlines have shifted focus toward the broader strength of the U.S. financial system. Mid-month, Moody’s issued a U.S. credit downgrade, triggering a spike in Treasury yields—pushing the 10-year back into the 4.5% range. This continues to pressure interest rates and challenge underwriting for more aggressive acquisitions. 

However, there are positive developments worth noting. The House passed the “Big Beautiful Bill,” which includes several favorable provisions for real estate owners—most notably, the reinstatement of 100% bonus depreciation. While Senate approval is still pending, the bill’s momentum could reignite buyer demand and motivate those on the sidelines to re-engage. 

Additionally, we are now seeing the first ripple effects of upcoming debt maturities, prompting some owners to bring assets to market—creating strategic opportunities for well-positioned buyers. 

As always, our team is here to provide insight and tailored strategies to help you navigate your investment goals during this period of transition. We look forward to connecting with you soon.

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