Investment in medical office buildings increased 35% year-over-year in 2025
PHOENIX (March 11, 2026) – CBRE announced it arranged the $26.2 million purchase of two medical office assets in Phoenix, Arizona, and San Rafael, California.
CBRE’s Nick Whitstone and Andrew Trillo represented SSP Investments Inc., a Bay Area–based family office, in both acquisitions.
"These acquisitions represent a disciplined approach to expanding our family office's footprint in the medical office sector. By securing assets with creditworthy tenants like SimonMed and Kaiser Permanente, we are ensuring stability and operational excellence for our investment platform for years to come," said Sean Pathiratne, CEO and Chairman of SSP Investments.
SSP Investments acquired 8921 W. Thomas Road in Phoenix, Arizona, for $17 million. The 42,067‑square‑foot medical office building is 100% leased to SimonMed Imaging, the nation’s largest outpatient physician radiology group. The building is located across from Banner Estrella Medical Center, a 317-bed hospital serving nearly 400,000 residents within a five-mile radius.
In addition, the firm acquired 111 Smith Ranch Road in San Rafael, California, for $9.2 million. The 27,200‑square‑foot medical building is fully leased to Kaiser Permanente. The property serves Kaiser’s Psychiatry & Addiction Medicine Services and is located just half a mile from its 150,000‑square‑foot regional headquarters.
“The medical office sector has been experiencing strong growth and has received an influx in investments in the last year. These assets offer long-term stability backed by creditworthy tenants in resilient medical submarkets,” said Whitstone, senior vice president at CBRE.
Annual investment volume in medical office buildings rose 35% year-over-year to $12.6 billion in 2025, the highest annual total since 2022, according to CBRE Research. Phoenix recorded the third-highest medical office building investment volume over the past four quarters, at $467.6 million.