This report covers Hospital and Medical Office Construction projects that are new, expansions or replacements greater than 7,500 square feet and $5 million in value. It provides detail on the overall pipeline (under construction and late planning), analysis of recent completions in 2016 and expected completions in 2017. Construction starts are trended quarterly and projected out 2 quarters.
In 2013, there were 271.6 million insured and 1.3B square feet of MOB space in the US..
Overall, the sector is performing near cyclical highs in terms of occupancy and NOI growth. The occupancy rate as of the 2nd quarter 2016 was 92.5%.
The report shows the construction pipeline is growing. The total US medical real estate construction pipeline now stands at $102.1 B which is up 5.1% from the year end 2015 figure of $97.1 B.
Three 300-million-dollar hospital projects have broken ground in the last two months – and they’re outside the top 100 metros. These projects are large in scale and bring in national firms to design and manage construction.
We often show in our reports and presentations the metros that have the most MOB 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 inventory.
2015 was a banner year for medical real estate. Transactions were at an all-time high, construction and development grew and fundamentals are near cyclical highs. We invite healthcare executives to join us for this informative, data-driven webcast in which Revista will provide an overview...
Overall, Revista reports the total construction pipeline at $97.1 Billion at year end 2015; this is up 12% from $86.7B during the first half of 2015.
The graph below shows completions (expected for 2016) for Hospital and MOB projects. As a reminder, Revista tracks projects that are new, adding space/beds, are greater than 7,500 square feet and $5M in value. When applying these filters we can see...
Did you know that Revista tracks medical real estate construction? Yes, it does track both Hospital and Medical Office construction across the United States. We finished the initial count of projects in early 2015 and while every state and market is different, the one thing all states have in common is that they all have medical real estate construction going on! The graph below tracks the value of hospital and medical office projects that are either under construction or approved and late in the planning process. It represents both public and private construction. Overall, according to the Revista first half 2015 construction report, there is over $86 Billon of such construction across the US. California and Texas lead the nation with $11.8 Billion and $7.7 Billion, respectively. Check out the graph below to see how your state stacks up!