Quick internet searches would tell you that the hospital sector is closing or shrinking due to growth in the outpatient sector. Revista data, however, paints a different picture of the hospital sector.
The Revista mid-year 2017 construction report says to expect 20.9 million square feet (SF) of MOB deliveries in 2018, which would be a rise of 10% over 2016’s 19.0 MSF delivered. And overall, 64% of the MOB expected deliveries in 2018 are expected to be off campus. That is up from 54% observed in 2014.
...although roughly 25% of inventory is investor owned nationally, the stats vary widely by metro. Some areas are predominantly owned by healthcare providers while other areas have a significant portion, sometimes majority, of the real estate owned by a third party - whether that be a REIT, institutional fund or private investor.
n 2013, the Healthcare REITs within the 2016 top owners report had funded roughly $0.5B worth of construction projects that were considered “in progress” at 12/31/2016. That $0.5B represented just 0.7% of their total gross real estate assets.
Revista has posted the Mid -2017 Top 50 Metro Rankings Report for Medical Real Estate to its subscriber portal.
The overall construction pipeline, comprised of Hospitals and Outpatient MOBs under construction and in late planning, stands at $104.4B..
Office-Meds can often present challenges for healthcare practices such as parking and access, among others. As such, the ratio of Office-Meds to MOBs can be an important stat to monitor market by market
...Verified started projects were down 18% in 2016 from 2015. 2017, at 18.9 million projected, has the potential to be at the same level or lower than 2016.
How large is the medical office sector and how fast is it growing? Who are the sector’s major owners and investors, and what type of financing is available? How does the industry perform during typical real estate cycles, and how has medical office performed in recent years? For answers to those and
Revista and HREI unveil the first independently verified research project to look exclusively at the development of medical office buildings (MOBs) and other outpatient facilities
ARNOLD, Md., and MINNETONKA, Minn., March 29, 2017 – How big is the market for the development of medical office buildings (MOBs) and other outpatient facilities, and who are the most active developers?
In the first independently verified research project to look exclusively at those questions, Revista and Healthcare Real Estate Insights (HREI) found that outpatient medical real estate development projects totaling nearly $7.7 billion in construction value and 19.4 million square feet were completed in 2016. Another 17.3 million square feet of outpatient projects with a value of almost $6.5 billion were started.
The top five outpatient developers in terms of square footage started or completed last year were