Revista Releases 2017 Mid-Year Construction Reports – 5 Key Takeaways
Revista has posted all Mid -2017 Construction Reports to its subscriber portal. Subscribers to Revista can access through “my Revista” page located at http://www.revistamed.com/user/myaccount. Here are 5 key takeaways from the mid-year reports:
- The overall construction pipeline, comprised of Hospitals and Outpatient MOBs under construction and in late planning, stands at $104.4B as of 6/30/2017. This is robust, but down from $109.4 recorded at year-end 2016.
- Expected completions for both Hospitals and MOBs are expected to rise in 2017. As of mid-year, we are expecting 29.6 million square feet (msf) of hospital space to complete in 2017, which would be up from 21.6 msf of space in 2016. We are also expecting 20.9 msf of MOB space to complete in 2017 which would be up from 19.0 msf completed in 2016.
- There are 135 New Hospitals under construction, according to the report. The median new hospital under construction is valued at $81M and contains 145,150 SF. 40 of these new hospitals are expected to open in 2017.
- Hospital and MOB starts are expected to peak in 4Q17. As of 6/30/17, we are expecting 14.1 msf of hospital space and 7.5 msf of MOB space to start construction. These are high water markets since Revista began tracking construction in 2014.
- Of the 50 largest metro areas, Atlanta (11.9%) and Sacramento (10.0%) have the highest amount of MOB square feet under construction compared to current inventory. Overall, MOB construction vs. inventory is 3.8% in the top 50 metros.