21ьз╕ C

Washington, D.C. Metro Medical Office Market Proves Resilient in Q2 2025 as Bullish Trends Play Out Amid Government Office Uncertainty

News Provided by ACCESS Newswire2025-09-23

Medical Pavilion I & II at National Harbor offers modern amenities in convenient "live, work, play, health" mixed-use environment

NATIONAL HARBOR, MD / ACCESS Newswire / September 23, 2025 /The first half of 2025 has reinforced the Washington, D.C. metro area 's reputation as a stable and high-demand market for medical office building (MOB) space, according to recent industry data.

With positive absorption for healthcare real estate trending nationwide, the top 125 markets totaled more than 15.9 million square feet in Q2, bringing the combined occupancy to 93.5 percent, according to Revista. The trend continues the medical office sector 's outperformance of the broader office market, which has struggled to regain momentum since the COVID-19 pandemic.

"We are definitely seeing resilience in the medical office market compared to general office space, which has been inconsistent - especially here in Washington, D.C. as the new administration sorts out some of the recent uncertainty," said Peter Papantoniou, Principal at Gittleson Zuppas Medical Realty, the leasing broker for Medical Pavilion I & II at National Harbor. "Much of the relative strength is due to the fact that healthcare isn 't directly tied to the government sector, which impacts much of the local office demand."

The trend supports national data recently released from the U.S. Bureau of Labor Statistics that found healthcare was, again, the leading employment sector in a month that saw most industries shrink their workforce, including the federal government - to the tune of 97,000 eliminated positions so far this year.

Finding the Right Medical Office

As medical practitioners expand their practices, Papantoniou cautions that all healthcare real estate is not the same, and practices should be looking for strategic locations with competitive amenities.

A new report from Northmarq found that the highest-growth markets for medical space are those near major health systems or along suburban medical corridors. The report highlights the Washington, D.C. metro area as one of the top four markets best positioned to leverage this trend.

The Washington, D.C. metro area, with its growing, aging population that increasingly seeks quality outpatient care in suburban communities, is poised for even stronger leasing momentum, Papantoniou said. This trend is amplified by the slow pace of new facility development due to rising labor and material costs.

"In Washington, more than 20% of the population will turn 65 in the next five years," Papantoniou said. "This is fueling demand for outpatient services such as cardiology and oncology, while younger patients seek more care options that are conveniently located and adjacent to retail and entertainment venues."

The "live, work, play, health" offering, Papantoniou noted, is a massive part of the appeal to a class-A facility such as Medical Pavillion I & II at National Harbor. The waterfront destination includes more than 40 dining options, boutique shopping, MGM National Harbor, The Capital Wheel, hotels, and year-round events - all within a short walk of the medical offices. Key amenities include:

Two Class-A Medical Office Building consisting of over 190,000 rentable square feet.
Co-located with luxury residential, retail, and office amenities
Walkable access to restaurants, grocery, and green space with sweeping views of National Harbor and the Potomac River.
High visibility along major suburban commuter corridors only eight miles from downtown Washington, D.C. and just across the Woodrow Wilson Bridge from Virginia.
Immediately available built out, medical office suites.
Ample structured parking, valet, and direct public transit access

For more information or to schedule a walk-through, contact Papantoniou at peter@gzrealty.net or Winston Williams at winston@gzrealty.net.

About Medical Pavilion I & II at National Harbor:
Located on the iconic waterfront of Maryland, Medical Pavilion I & II at National Harbor is a class-A 190,000-square-foot outpatient medical campus situated in a premier mixed-use location just eight miles from downtown Washington, D.C. It includes the University of Maryland Medical System and Adventist Health Care, offering an unrivaled platform for healthcare providers to grow their practice and the highest quality patient experience anywhere in Prince George 's County.