Healthcare Construction Thriving in Northeast
In inaugural market report, real estate data firm Revista says 66 healthcare construction projects totaling $7.9 billion and 8.9 million square feet are under way or in late planning in the region; other regional and national reports soon to come. Revista also announces the opening of registration for its first national event, scheduled for Nov. 19-20 in Chicago.
Healthcare real estate (HRE) construction is booming in the Northeastern United States, according to healthcare real estate data service Revista.
In its inaugural regional market report, the HRE data firm said 66 healthcare construction projects totaling $7.9 billion and 8.9 million square feet were under way or in late planning in New York, Connecticut and New England. The Northeast market report was unveiled May 20 at an invitation-only launch event at the offices of law firm Foley & Lardner LLP in Boston. HRE data for other regions and the United States as a whole will be released later this spring.
“The level of healthcare real estate construction activity seen in the Northeast bodes well for the rest of the country,” Mike Hargrave, one of Revista’s founding principals, said at the Boston event. “Although we don’t have national data yet, we would not be surprised to see similar levels of activity in other parts of the nation.”
The Northeast launch event was attended by just over 40 hospital, health system and physician practice group executives and HRE professionals. The event, sponsored by Foley & Lardner, included presentations by two of Revista’s Principals, Hilda Flower Martin and Mr. Hargrave. It also included a series of lively panel discussions featuring Revista’s founding advisory board members, as well as other industry experts including Christopher J. Donovan, Attorney, Foley & Lardner; Robert Milligan, Senior Vice President – Corporate Finance, Healthcare Trust of America Inc. (HTA); and Frank Nelson, Executive Director – Capital Markets, Cushman & Wakefield.
Revista’s founding partners are HTA, Health Care REIT Inc., HealthTrust LLC, Raymond James and Surface Logic. Its advisory board members are Andy Baxter, CEO, Surface Logic; Sam Chandan, President & Chief Economist, Chandan Economics; John Duggan, Vice President of Real Estate Operations, Reliant Medical Group; Daniel M. Klein, Senior Vice President, Medical Facilities Group, Health Care REIT; Scott D. Peters, Chairman, President and CEO, HTA; Alan C. Plush, MAI, Senior Partner, HealthTrust LLC; Bob Reilly, Chief Financial Officer, Anne Arundel Health System; Joshua A. Teague, Director, Real Estate, BJC Healthcare; Murray W. Wolf, Publisher and Founding Editor, Healthcare Real Estate Insights™ and Managing Principal, Wolf Marketing & Media LLC; and Laca Wong-Hammond, Head of Healthcare Real Estate, Raymond James.
The Northeast: A big, dynamic market Other highlights of Revista’s Northeast market report include:
- There are a large number of medical facilities in the Northeast, including 473 general acute care hospitals, 4,491 medical office buildings (MOBs) and 2,105 other healthcare buildings.
- Most medical facilities in the region are affiliated with a health system. Forty-four percent of MOBs are affiliated with a hospital, 36 percent of MOBs are affiliated with a health system and 68 percent of hospitals are affiliated with a health system.
- Construction of healthcare facilities in the Northeast is going strong. This includes 43 MOB/outpatient facility projects totaling more than 4.35 million square feet with a total value of almost $2.9 billion, and 23 hospital/inpatient projects totaling more than 4.5 million square feet with a total value of more than $5 billion.
A state break-down of hospitals being built or in the late planning stages is as follows:
- Connecticut, four projects, 1.34 million total square feet, $1.081 billion approximate value
- Massachusetts, seven projects, 641,543 square feet, $555 million
- Maine, two projects, 401,000 total square feet, $287 million
- New Hampshire, no projects
- New York, 10 projects, 2.17 million total square feet, $3.09 billion
- Rhode Island, no projects
- Vermont, no projects
- Totals, 23 projects, 4.55 million square feet, $5 billion
By state, MOB projects under construction or in the late planning stages are as follows:
- Connecticut, nine projects, 708,139 total square feet, $464 million approximate value
- Massachusetts, 11 projects, 756,263 total square feet, $595 million
- Maine, five projects, 398,700 total square feet, $50 million
- New Hampshire, two projects, 190,974 total square feet, $124 million
- New York, 16 projects, 2.3 million square feet, $1.65 billion
- Rhode Island, no projects
- Vermont, no projects
- Totals, 43 projects, 4.4 million square feet, $2.9 billion
Revista plans to release more detailed HRE data for the Northeast, as well as reports for other regions and the United States as a whole, this summer. For more information, please contact Mike Hargrave of Revista at 443-949-8794 or firstname.lastname@example.org.
Registration will open July 1 for National Event
At the Northeast launch, Revista announced that it will hold a National Data Launch & Conference, Nov. 19-20, at the Sheraton Chicago Hotel & Towers. The event will include a VIP Founders Reception, a Launch Celebration Reception open to all participants, two General Sessions and three Executive Roundtables. The event’s focus is to provide strategic data – never-before available – to industry participants, and connect them with the people that matter most to their business in an efficient, VIP atmosphere. Medical executives from hospitals and physician groups, as well as other healthcare real estate professionals will explore timely topics impacting medical real estate today with Revista’s fact-based data to back up each discussion. Registration for the event will open July 1
For more information about the National Data Launch Event and/or sponsorship opportunities, please contact Elisa Freeman of Revista at 443-949-8794 or Elisa@revistamed.com.