Because here’s the thing most people miss: not all commercial real estate is getting hammered equally. In fact, there’s one corner of the market that’s not just surviving this storm — it’s thriving. And you’re standing in it.

Let me paint you two pictures.

Picture #1: Traditional Office. Vacancy is hovering around 20% nationally. Remote work gutted demand. And it’s not recovering — this is a structural shift, not a temporary dip. According to CoStar data, more than 83% of CMBS office loans are showing at risk rate has hit an all-time high. Office buildings that were worth $50 million in 2019 are selling for $20 million today. In some cases, less. Lenders don’t even want to hear the word “office” right now.

Picture #2: Medical Office & Wellness Properties. Occupancy is sitting at about 93% across the top markets in the country — the strongest level in the past decade according to Transwestern. In 42 metro areas, it’s actually above 95%. Tenant retention is near 89% annually. And here’s the detail that really tells the story: new medical office construction has dropped significantly, which means the supply of available space is getting tighter while demand keeps growing.

Same economy. Same interest rate environment. Completely different outcomes.

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This isn’t luck. There are real, structural reasons why wellness and medical real estate keeps outperforming while other sectors struggle. Let me walk through the big ones.

You can’t do a chiropractic adjustment over Zoom. Seriously. The reason traditional office is dying is because most of what happened in an office building can now happen from someone’s living room. But healthcare and wellness services can’t all be delivered via telehealth.  You need a physical space. Your patients need to walk through a door. That’s not changing. Ever!

Demographics are a tailwind, not a headwind. Right now, more than 11,000 Baby Boomers turn 65 every single day. By 2030, we’ll have 73 million Americans over 65 — and they use healthcare services 2–3 times more frequently than younger people. That’s nearly $2 trillion in outpatient spending heading your way. JLL projects outpatient volumes will grow over 10% in the next five years. Healthcare employment is growing at 2.8% versus just 0.9% for the overall economy. The demand engine behind wellness real estate is demographic, it’s structural, and it’s not slowing down.

The global wellness economy is exploding. We’re talking $6.8 trillion today, projected to hit $9.8 trillion by 2029. Med spas, longevity clinics, integrative health, functional medicine, IV therapy, mental health practices — these categories are growing at rates that make traditional retail look like it’s standing still. And all of those businesses need physical space.

Lenders love wellness business owners. Here’s something most wellness operators don’t realize: when a bank is deciding whether to approve a refinancing for a building, one of the biggest things they look at is who’s on the rent roll. Wellness and healthcare tenants are considered “flight to quality” — you sign longer leases, your operations are sticky (patients don’t like switching providers), and your businesses tend to be recession-resistant. You’re literally the tenant profile that landlords need to show lenders right now.

If you’re a wellness operator or tenant: You have more leverage than you think. Landlords are competing for quality tenants, and you’re exactly what they’re looking for. If your lease is coming up for renewal, if you’re looking for a second location, or if you’ve been thinking about negotiating better terms — the market is tilting in your favor. Don’t let that window close without making a move.

If you’re a landlord or property owner: This is actually great news for you too, if you play it right. In many markets, wellness tenants can justify rent premiums of 10–25% over traditional retail, depending on use and location. They bring long lease terms, high retention, and the kind of tenant stability that makes lenders comfortable. If you’re repositioning a property or looking to improve your rent roll before a refinancing event, wellness tenancy is one of the smartest strategies available. Construction activity is already picking up in select markets — including Tampa, Miami, Houston, and Dallas — because owners are recognizing this play.

If you’re an investor: Medical office cap rates stabilized at around 6.9% in early 2025 — the first quarterly decrease since mid-2022. As financing costs ease, these assets are poised for cap rate compression. Wellness-anchored properties offer something most other CRE sectors can’t right now: predictable cash flow backed by growing demand. CBRE is forecasting a 12% increase in overall CRE sales volume in 2026, and healthcare real estate is a major beneficiary.

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_{Not financial advice.}

I’ve spent 26 years in healthcare. I didn’t come to real estate from a finance background — I came from the clinical and operational side. I understand why wellness real estate performs differently because I’ve lived inside the businesses that occupy these spaces. The demand isn’t theoretical to me. I’ve seen the waiting lists, the expansion plans, the patient volume growth firsthand.

That’s what I bring to the table as a Fractional Chief Real Estate Officer. I don’t just read the market reports — I understand what the numbers mean for the people actually running these businesses.

Here’s what I want you to do right now:

Want to talk about your specific situation? Book a complimentary 30-minute strategy session. I’ll give you a clear picture of where you stand.

Until next week,

Leigh A. Brower

Fractional Chief Real Estate Officer

The Next Gen Dev | The Wellness Edition

The Next Gen Dev - Wellness Edition is your weekly briefing on the strategies and frameworks that separate wellness businesses building the future from those stuck in the past.