Medical Office Real Estate in Baltimore, MD

Cap rates for medical office properties in Baltimore vary by submarket, property class, and occupancy levels. The overall Baltimore market average cap rate is approximately 6.8%. Class A properties typically trade at lower cap rates than value-add opportunities.

Healthcare demand is driven by demographics (aging population) and medical necessity rather than economic conditions. People require medical care regardless of the economic environment, and the shift toward outpatient care continues to accelerate. Medical tenants have long lease terms, high renewal rates, and significant buildout costs that make relocation unattractive. These factors combine to produce stable occupancy and rent collection even during economic downturns.

On-campus MOBs are located on or immediately adjacent to a hospital campus, benefiting from direct referral traffic, shared services, and the hospital system brand. They typically command lower cap rates (4.5-5.5%) due to perceived stability. Off-campus MOBs are standalone or in medical parks away from hospitals, typically trading at higher cap rates (5.5-7.0%) but offering potentially higher returns. Off-campus properties may have more diverse tenant bases and less dependence on a single health system.

Baltimore benefits from spillover demand from the DC metro, particularly for workers who can commute via MARC train or I-95. Housing and commercial rents are significantly lower than DC, making Baltimore attractive for price-sensitive tenants and workers. Federal agencies including the Social Security Administration, National Security Agency, and CMS maintain major operations in the Baltimore metro. However, Baltimore maintains its own distinct economy and should not be viewed merely as a DC suburb.

Tradepoint Atlantic is a 3,300-acre logistics and industrial campus on the former Bethlehem Steel site at Sparrows Point on the Patapsco River. The facility offers deepwater port access, rail connections, and millions of square feet of modern warehouse space. Amazon, FedEx, and Under Armour are among the major tenants. The site's scale and multimodal capabilities make it one of the most significant industrial developments on the East Coast.