Cohen Property Law Group managing attorney Liam Krahe spoke with, commenting on how medical office buildings (MOBs) make for an appealing asset class for lenders and investors due to their stability and low default rates. Features like long-term leases, consistent cash flow, and adaptable space reduce the risk of borrower default, even in challenging markets.

"From an underwriting standpoint, medical office buildings are attractive because they are typically occupied by high-income producing and strong creditworthy tenants such as physicians, dentists, and other health care professionals," Liam said. "Additionally, MOB tenants are less likely to relocate to another building because they usually make significant capital investments in their respective office space."