2025 Conejo Valley Medical Office Leasing Trends: What Landlords & Tenants Need to Know
Introduction
The Conejo Valley commercial real estate market continues to evolve as we head into 2025, and nowhere is this more evident than in the medical office sector. With hospitals expanding, physician groups consolidating, and patient demand growing, both landlords and tenants need to understand how leasing dynamics are shifting. Whether you’re an owner trying to maximize occupancy or a healthcare provider searching for the right space, the trends outlined here will help you navigate today’s market with confidence
Why Medical Office Demand Remains Strong in Conejo Valley
Healthcare has long been one of the most resilient segments of commercial real estate, and in Conejo Valley that trend shows no signs of slowing down. Key drivers include:
Population growth & aging demographics – An increasing number of seniors in Ventura County and western Los Angeles County continues to push demand for outpatient care.
Hospital & clinic expansions – Facilities such as Los Robles and Rolling Oaks Medical Center anchor the area’s healthcare ecosystem, creating spillover demand for nearby office space.
Shift toward outpatient care – More providers are seeking flexible suites in medical office buildings rather than large, traditional hospital campuses.
For landlords, this sustained demand translates into an opportunity to capture stable, long-term tenants. For tenants, it underscores the importance of acting quickly when quality space becomes available.
Lease Rate Trends for 2025
Leasing rates across Conejo Valley’s medical office inventory have ticked up steadily over the last two years. In 2025:
Average asking rents are projected to remain competitive compared to Greater Los Angeles but are trending upward due to limited supply of modern medical office buildings.
Tenant concessions (like free rent) are shrinking as occupancy strengthens, though they may still be available in older buildings or larger suites requiring heavy build-out.
Escalations remain in the 3% annual range, aligning with regional averages.
Landlords should re-evaluate asking rates and align with current demand. Tenants should budget realistically and factor in escalations when planning long-term occupancy costs.
Tenant Improvement (TI) Costs & Timing
Medical office leasing is unique in that almost every tenant requires specialized build-outs. In 2025, several factors are influencing TI allowances and schedules:
Higher construction costs – Inflation in materials and labor means even standard build-outs are more expensive than in previous years.
OSHPD 3 requirements – Practices requiring surgery centers or advanced medical equipment must allocate more time and budget for compliance.
TI allowances – Landlords are contributing, but often only partially; tenants should expect to share in the upfront investment.
Timeline tip: Tenants should start the leasing process 9–12 months before their target occupancy date to allow time for design, permitting, and construction.
Key Takeaways for Landlords and Tenants
For Landlords
Position your property at market rents while highlighting amenities, parking, and accessibility.
Be open to flexible lease terms and creative TI packages to attract high-quality tenants.
Leverage landlord representation services to align lease terms with refinancing and long-term investment goals.
For Tenants
Start early — the best medical office spaces in Conejo Valley lease quickly.
Budget for escalations and share of TI costs.
Work with a tenant representation expert to identify the right locations, negotiate allowances, and secure favorable lease terms.
Conclusion
Medical office leasing in Conejo Valley remains a highly competitive and attractive sector for both landlords and tenants. With strong demand, rising TI costs, and evolving market conditions, navigating leases in 2025 requires strategy and foresight. Whether you’re a landlord aiming to maximize NOI or a medical practice planning your next move, understanding these trends is the first step toward success.
Call to Action
Looking to lease, own, or reposition medical office space in Conejo Valley? I provide landlord and tenant representation across Thousand Oaks, Westlake Village, Agoura Hills, and Greater Los Angeles. Contact me today to discuss your next steps.