Expect 2016 to be a BIG year for MOB completions…
There has been much talk about the shift towards outpatient care. While this trend is certainly occurring, the construction numbers tracked by Revista have generally been showing much more hospital construction than MOB construction. However, recent updates are starting to support the trend towards outpatient construction.
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 that the industry can expect roughly 19.6M square feet of MOB space to complete in 2016. That is up by 56% over 2015 completions and 142% over 2013 completions. It is safe to say MOB construction has picked up!
The numbers also bear out a shift from hospital construction to MOB construction. In 2015 Hospital completions were dwarfing MOB completions but in 2016 expect that to change. The hospital sector is expected to deliver 21.6M square feet in 2016 compared to 19.6 for the MOB sector.
Please keep watch for the year-end 2015 Revista Construction Reports coming out soon. Subscribers to Revista get full access to these reports. Check out our basic premium subscription here or contact Hilda Martin for enhanced subscription options.
Completions by Year