Property fundamentals remain steady. Medical offices were not as impacted by the pandemic as other facets of the health care system. Some patients opted to skip doctors’ visits in 2020, but this trend has generally dissipated, returning demand to a more typical pattern. Over the last 20 years, medical office vacancy has stayed between 8 and 10 percent and, in June 2023, the rate was just 50 basis points above the long-term average. Operations are also aided by reduced supply-side pressure as development slows amid rising construction costs. As of September, medical office space accounted for just 10.7 percent of the total office pipeline. Therefore, the sector’s main challenge is not supply, but rather a health care labor shortage. The pandemic exacerbated an existing worker shortage that may hinder practices seeking to match anticipated future medical care growth.