| More Landlords Are Open to Medical and Dental Tenants This performance gap has made healthcare practices increasingly attractive—even to landlords that traditionally focused on general office users. In a softening market, many of these landlords are now actively seeking healthcare-related tenants to stabilize their buildings. That shift has expanded the number of viable locations for medical and dental practices and increased competition, leading to more favorable deals. Leasing Activity Is Surging In 2024, Boston saw 870,000 square feet of medical leases signed—a 7-year high. That momentum has carried into 2025, with practices locking in strong deals in both traditional medical office buildings and former general office spaces that have now opened up to healthcare use. While asking rents have held flat, landlords are offering increased incentives to attract and retain tenants. Flat Rents, Bigger Concessions CoStar reports that medical office rents grew just 1.1% over the past year, while all office rents increased only 0.2%. But the real leverage is in the concessions. Tenant improvement allowances, free rent, and other incentives have all increased. While asking rents may appear stable, effective rents are down due to these concessions—a major opportunity for practices with expiring leases. | 
