Signs of Stabilization Amid Lingering Softness

August continued the slow pace of 2025 for medical office transaction volume, following what was the slowest quarter in over a decade. Between the seasonal lull of late summer and the back-to-school transition, activity remained muted across most markets. The data reflects a continued backlog of inventory, with only about 7% of on-market properties transacting each month and average days on market increasing across nearly every major Texas metro.

Despite the slowdown, there is a growing sense of optimism heading into the final quarter—historically the most active period for closings. The anticipated Fed rate cut in September, coupled with CRE-friendly legislation and favorable cyclical timing, could help drive renewed momentum. Encouragingly, we’ve already begun to see an uptick in buyer engagement as summer fades. While the bid-ask spread remains a hurdle, both buyers and sellers appear increasingly willing to make concessions to get deals moving.