Carmel, Indiana, has long been known for its high quality of life, strong local economy, and thoughtfully planned development. But over the past few years, one asset class has stood out among commercial investments: medical office buildings (MOBs).
As demand for healthcare rises and patients seek more localized, accessible services, Carmel has become a prime destination for medical office expansion. Here’s why this sector is booming—and why savvy investors are paying attention.
1. Carmel’s Population Growth Supports Healthcare Demand
Carmel is one of the fastest-growing suburbs in the Midwest, with a population now exceeding 100,000 and continuing to rise. As more families, retirees, and working professionals move into the area, the need for convenient, high-quality medical care has skyrocketed.
What this means for investors:
Healthcare tenants—such as primary care, pediatrics, dermatology, dentistry, and outpatient specialists—are looking for well-located office space to serve this expanding patient base. Medical office buildings offer long-term occupancy and consistent income in these growth markets.
2. High-Income Demographics Attract Premium Providers
Carmel is home to some of Indiana’s highest-income households, which naturally draws in premium healthcare providers and specialty clinics looking to serve an affluent, insured population. Elective and wellness-based medical tenants—such as plastic surgeons, audiologists, and concierge health providers—are seeking Class A space in high-visibility locations.
Why this matters:
Investors benefit from tenants with strong financials, long lease terms, and steady patient flow. These tenants are also more likely to invest in customizing and maintaining their space, increasing long-term value for the property owner.
3. Proximity to Major Hospitals and Healthcare Networks
Carmel is anchored by large regional healthcare systems such as:
- IU Health North Hospital
- Ascension St. Vincent Carmel
- Franciscan Health offices nearby
These hospitals generate patient referrals and often require additional outpatient and specialty care space in surrounding buildings. Many independent practitioners and private groups prefer to locate near—but not within—hospital campuses for better lease terms and flexibility.
Investor insight:
Properties located along Keystone Parkway, 116th Street, and US-31 offer ideal proximity without the costs associated with hospital-owned property.
4. Medical Office Leases Offer Stability and Strong Returns
Unlike general office tenants, medical tenants:
- Sign longer leases (often 7–10 years or more)
- Invest heavily in custom buildouts
- Have low turnover
- Tend to remain even during market downturns
This stability translates to lower vacancy risk and higher NOI consistency—making medical offices some of the most recession-resistant assets in commercial real estate.
5. Zoning and Infrastructure Support Healthcare Expansion
Carmel’s development-friendly environment and progressive zoning policies allow for medical use in many commercial districts. Ample parking, ADA compliance, and access to infrastructure such as fiber internet and public transportation also make it easier for healthcare providers to deliver efficient care.
Key submarkets in demand:
| Area | Why It Works |
|---|---|
| Meridian Corridor (US-31) | High visibility, Class A availability |
| Old Meridian/Medical Dr. | Established healthcare presence |
| 116th & Rangeline | Central, walkable, ideal for clinics |
Final Thoughts
Medical office buildings are booming in Carmel because they meet a perfect blend of demographic strength, economic stability, tenant demand, and smart city planning. For investors looking for income-generating commercial assets with long-term durability, this is a sector—and a city—worth watching closely.
At Annie Scott Realty Group LLC, I help investors identify, analyze, and acquire medical office properties across Hamilton County. Whether you’re looking for a single-tenant deal or a multi-suite MOB with room to grow, I’ll help you navigate the opportunity with clarity and confidence.
Let’s talk about finding your next strategic investment in Carmel’s growing healthcare real estate market.
Photo Credit: Luxury Presence
Sources:
- CoStar Submarket Report – Carmel Medical Office
- U.S. Census – Carmel Demographics (2025 Estimates)
- Indiana Hospital Association
- City of Carmel Economic Development Department
