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MEDICAL OFFICE MARKET UPDATE Q 2 2 026 | C H A R L E S T O N , S C

Q2 2026 SNAPSHOT

4,439,808 SF TOTAL INVENTORY

2.0% VACANCY

$ SF

ASKING RENTS

30,000 SF

MEDICAL OFFICE REAL ESTATE MARKET OVERVIEW • Hospital systems have made bold moves and are working on stabilizing their investments, physician groups are consolidating, and shifting reimbursement is reshaping how and where care gets delivered. Through these changes, medical office fundamentals have stayed resilient as we head in to the second half of 2026. • National medical office asking rents reached $25.40/SF in Q1 2026 up about 1.6% over the past year and continues to climb. • National occupancy is sitting near a cyclical peak around 93%, which is at a level to indicated new construction is needed.

CONSTRUCTION

• Investment into medical office is back! MOB investment jumped 78% in Q1 2026 as rents climbed and cap rates tightened.

0 SF

• In Charleston, demand for medical office space is high and continues to outstrip new supply.

YTD DELIVERIES Source: CREG Healthcare - MOB Cap Rates 2026

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Q 2 2026 | C H A R L E S T O N , S C

MOB Market Backdrop HOSPITAL SYSTEMS: WHAT 2025 TOLD US

MEDICARE: THE STRUCTURAL PRESSURE POINT

• Hospital systems have found their footing. Well-capitalized players are pulling ahead with aggressive growth plans to capture market share, while those with a weaker payer mix or heavy rural exposure are still working to adapt to the changes throughout the state.

• Physicians finally caught a break. For the first time in years the Medicare update went the right direction with CMS having finalized the 2026 Physician Fee Schedule last October with an actual raise, not a cut. • There’s a new wrinkle for 2026. It introduces two conversion factors instead of one: $33.57 for physicians in advanced payment models (+3.77%) and $33.40 for everyone else (+3.26%), both up from $32.35.

• The playbook for operating has been consistent. Push more care into outpatient settings, protect the referral base, and add access points closer to where patients actually live.

• Most of that bump comes from a one year statutory boost, so the longer-term margin pressure and the steady push toward value and tighter coding has not gone away.

• M&A got pickier and deal activity became more targeted, with systems leaning into ambulatory care, behavioral health and lab services.

MARKET ACTIVITY: LOCAL TO NATIONAL

PRIVATE PRACTICES ARE BECOMING MORE SCARCE

• Here in Charleston, steady population growth and systems working together keep outpatient demand strong, especially near the major campuses.

• Going it alone is getting harder. Private practice slipped to about 42% of physicians in 2024, down from 60% in 2012 and roughly 47% are now employed directly by hospitals.

• Across South Carolina, a handful of large systems run the majority of healthcare, which tends to cluster new outpatient development around them.

• Private Equity Investment (“PE”) is real and grabs headlines, yet it touches only about 6.5% of physicians nationally and north of 30% in fields like GI, dermatology and ophthalmology.

• Zooming out, the Southeast is still one of the busiest regions in the country for outpatient expansion, and MOB fundamentals look strong next to traditional office almost everywhere.

• Regulators are watching more closely. Tighter scrutiny on PE deals has made buyers more disciplined, but the outlook for practice-management M&A in 2026 still looks healthy.

Sources: PWC - Health Services U.S. Deals 2026 Outlook GAO Health Care Consolidation (GAO-25-107450) Healthcare Business Today - PPM M&A 2026 Outlook

Q2 2026 | MEDICAL OFFICE SUBMARKET SUMMARY TOTAL VACANT SF

WEIGHTED ASKING RENT

VACANCY RATE

UNDER CONSTRUCTION SF

0.0%

3,773

$35.00

2.9%

154,733

0.0%

Upper North Charleston

712,975

6,684

$29.03

0.9%

Mount Pleasant

866,898

39,248

2,556

41,804

$37.59

4.8%

Summerville

790,749

3,431

$33.03

0.4%

30,000

West Ashley

961,644

39,848

3,746

43,594

$36.19

3.6%

TOTAL SUBURBAN

3,671,043

92,984

6,302

99,286

2.46

30,000

TOTAL MARKET

4,439,808

92,984

6,302

99,286

2.0%

30,000

TOTAL INVENTORY SF

DIRECT VACANT SF

Downtown

768,765

Daniel Island

129,483

Lower North Charleston

SUBMARKET

SUBLEASE VACANT SF

Bridge tracks buildings 10,000 SF and greater and uses only internal research within its Charleston office for market research reporting.

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YTD DELIVERIES SF

Q 2 2026 | C H A R L E S T O N , S C

Charleston’s Health System News Charleston’s fundamentals keep delivering. Above-average population growth, an aging demographic and steady inmigration are pushing outpatient demand higher, and four large health systems are shaping how that demand gets met with each running a slightly different playbook on access, scale, and outpatient care.

MEDICAL UNIVERSITY OF SOUTH CAROLINA (MUSC) •The Citadel Mall deal is now official. MUSC bought roughly 330,000 SF plus about 2,300 parking spaces for $83.5M. The plan is a full retail-to-clinical conversion turning old mall space into clinics, specialty and outpatient care, research and clinical trials.

MUSC’s Clements Ferry Pavilion opened January 2026.

• In April, MUSC broke ground on their new 80,000 SF four story medical office building in Nexton. The building will be located across from the MUSC Hollings Cancer Center and MUSC Health Nexton Medical Center. Expect to deliver fall 2027. • MUSC opened their 80,000 SF medical office building in the Clements Ferry corridor in December 2025 to serve patients in both Charleston and Berkley Counties.

ROPER ST. FRANCIS HEALTHCARE • The big project is taking shape. Roper’s $1.2B North Charleston campus started structural steel in May 2026, so the 805,000 SF, 328-bed hospital is officially rising now with completion targeted for 2029. • Roper announced a new suburban medical office pavilion in Mount Pleasant back in March to add outpatient capacity on to Mount Pleasant and still cater to the downtown patient population. • Roper opened Sawmill Centre, a 45,000 SF MOB located in Summerville, this June.

HCA HEALTHCARE (TRIDENT & SUMMERVILLE MEDICAL CENTERS) • HCA is deploying a massive $300M capital plan across the Lowcountry aimed directly at outpatient access and emergency capacity. • Two freestanding ERs are going up this year. One on Johns Island (a future hospital campus site) and one in Mount Pleasant off Long Point Road, with a Cane Bay ER groundbreaking on deck. • An 80,000 SF Trident expansion is in the works, adding cardiology, neurology, orthopedics and rehab right next to the North Charleston campus. BRIDGE-COMMERCIAL.COM

Rendering of Novant Health’s 32,000 SF medical facility located in Summer’s Corner in Dorchester County.

• A roughly $67M Summerville project was completed in 2025, bringing on more licensed beds and about 64,000 SF of new space.

NOVANT HEALTH • Novant’s three-hospital purchase in South Carolina, including East Cooper Medical Center in Mount Pleasant, gives it a noticeably bigger presence across the state. • Four new Nexton clinics just opened. They came online in Summerville’s Nexton community in March, covering primary care, general surgery, OB-GYN and weight management. • Summer’s Corner keeps moving. Novant is building a 32,000 SF medical office building paired with an 11,000 SF freestanding ER in Summerville, with doors expected to open in late 2026. • Novant has recently purchased two large tracts in Ladson and Summerville for potential regional hospital expansions.

Q 2 2026 | C H A R L E S T O N , S C CHARLESTON REGION | EXISTING & FUTURE HOSPITAL SYSTEMS

M* N*

R GOOSE CREEK

SUMMERVILLE

H N*

MUSC

ROPER

HCA / TRIDENT

NOVANT

FUTURE HOSPITAL

NORTH CHARLESTON

R R*

M R* M

MOUNT PLEASANT

JAMES ISLAND

JOHNS ISLAND

Rendering of Roper St. Francis’ $1.2+ billion medical campus located in North Charleston.

Rendering of MUSC’s new 70-bed hospital in Nexton.

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Q 2 2026 | C H A R L E S T O N , S C

MEDICAL OFFICE OPPORTUNITIES

227 STALLSVILLE LOOP SUMMERVILLE 1,500 - 5,077 SF AVAILABLE

THE HUB SUMMERVILLE (NEXTON) 20,000 - 30,000 SF AVAILABLE

MIDWAY MEDICAL PLAZA MYRTLE BEACH 31,000 SF FOR SALE

DAYFIELD PARK SUMMERVILLE (NEXTON) 2,000 - 20,000 SF AVAILABLE

TOWNE AT COOPER CLEMENTS FERRY 5,000 - 36,000 SF AVAILABLE

14 FARMFIELD AVENUE WEST ASHLEY 1,216 - 9,997 SF AVAILABLE

Your Healthcare Commercial Real Estate Professionals MATT JOHNSON Healthcare Lead +1 985 237 2580 matt.johnson@bridge-commercial.com MARK MATTISON, Executive Vice President +1 843 437 1545 mark.mattison@bridge-commercial.com Bridge Commercial makes no guarantees, representations or warranties of any kind, expressed or implied, including warranties of content, accuracy and reliability. Any interested party should do their own research as to the accuracy of the information. Bridge Commercial excludes warranties arising out of this document and excludes all liability for loss and damages arising out of this document.

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