October Recap | Momentum Builds as Fundamentals Strengthen

October marked a clear acceleration in medical office transaction activity across Texas. Sellers are adjusting to market realities, with average asking prices per square foot declining and average asking cap rates rising slightly—both contributing to a narrowing of the bid-ask spread. While the Federal Reserve reduced rates by 25 basis points, long-term Treasury yields—more directly tied to borrowing costs and cap rates—have remained relatively stable. Even so, investor sentiment is turning increasingly optimistic.

This renewed confidence, coupled with more realistic pricing, has led to a notable surge in activity. Accurately priced medical assets are attracting multiple offers and moving quickly. Our team alone has placed nearly $50 million under contract in the past 45 days across a diverse range of medical asset profiles throughout Texas.

Looking ahead, the anticipated end of Quantitative Tightening (QT) later this year should further support demand. While we don’t anticipate dramatic pricing swings, we do expect sustained, incremental growth as macroeconomic conditions continue to stabilize. The prevailing outlook is one of cautious optimism.

All signs point to a positive environment for medical real estate owners in Texas. In times like these, investor objectives—not short-term market timing—should remain the primary focus. Our team remains committed to long-term strategic planning, helping clients mitigate downside risk and prepare for value-maximizing liquidity events. We look forward to continuing to serve as a trusted resource and provide real-time market insight.