3 Hot Construction Markets
We often show in our reports and presentations the metros that have the most medical office construction activity. Frequently this ends up being the usual suspects – New York, Chicago, Los Angeles etc. and this is simply because these are the largest overall markets so they will tend to have more space being built. To broaden the spectrum, let’s take a look at metros that are the most active in comparison to their existing MOB inventory. Below is a chart showing 3 of the most active markets relative to their existing stock and all are around 10% construction to inventory. (The national average is 3.3%)
Top 3 Markets by Construction to Inventory
Columbus - Columbus comes in tied for the top of our list with 10.3% of existing medical office inventory under construction. That amounts to 951,295 square feet of space that is either in late planning or broken ground. Columbus has continually been an active metro for healthcare construction and the current pipeline is no exception. Nationwide Children’s Hospital has two outpatient projects expected to open in early 2017, OhioHealth just began construction on an expansion of their Bone & Joint Center and the Jameson Crane Sports Medicine Institute is expected to open in the fall.
Buffalo – Along with Columbus, Buffalo has 10.3% of its MOB inventory under construction with 663,960 square feet in planning or broken ground. One of the larger projects is Roswell Park Cancer Institute’s new Clinical Sciences Center. This 142,000 square foot project is expected to open next month and will house a breast center, expanded mammography center, a new chemo-infusion clinic and state of the art office facilities.
Richmond – Richmond is a smaller market than Buffalo or Columbus, but relative to its existing inventory, it has a lot of construction activity at 9.6%. A big project in this market is the Bon Secours Medical Park which will be the anchor of Broad Hill Centre – a village including condos and townhomes in addition to the 170,000 square feet of medical space. Only a mile or so away, West Creek Medical Park opened its first MOB last year and has another two 60,000 square foot buildings planned to go up alongside. Closer to downtown, Henrico Doctor’s Hospital recently had construction plans approved for a cancer center near the hospital.
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