Glossary

On-Campus Medical Office Building (MOB)

Also known as: on-campus MOB, MOB

A medical office building physically located on or immediately adjacent to a hospital campus, typically enjoying stronger physician and health-system tenant demand, higher occupancy stability, and often a ground lease or other formal affiliation with the hospital.

On-campus MOBs generally command lower cap rates and are viewed as the highest-quality, most defensive segment of healthcare real estate because physician tenants value hospital proximity for referral patterns, shared imaging and lab services, and patient convenience, and hospitals themselves often actively manage on-campus leasing to maintain a curated tenant mix aligned with their service lines. On-campus status is frequently formalized through a ground lease with the health system (rather than fee-simple ownership of the underlying land), which introduces ground-lease-specific considerations -- reversion, use restrictions tied to healthcare purposes, and health-system approval rights over tenant mix or transfers -- that off-campus MOB ownership does not carry.