While MOB transaction activity might have cooled somewhat and MOB construction remains steady, deliveries of hospital projects have been on a spike. Based on projects that have either opened or are scheduled to open by the end of the year, we will be adding roughly 35 million square feet to inventory in 2019.
MedCraft Healthcare Real Estate was the most active developer in 2017 with a total of 8 projects and 470,000 square feet started or completed. NexCore Group was the most active for project starts and HTA Development LLC was the most active for project completions.
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 overall construction pipeline, comprised of Hospitals and Outpatient MOBs under construction and in late planning, stands at $104.4B..
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.
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.
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!
The new Mercy Medical Arts Building in Miami is now under Construction. The new 116,000 square foot MOB will be located on the campus of Mercy Hospital, a 1.5 million square foot hospital owned and operated by HCA.