Despite the challenges this year with COVID-19, medical office projects continue to break ground. Interestingly, the proportion of 3rd party developed projects starting is increasing as the year progresses.
Last year 77 medical office projects started that will be over 100,000 square feet when completed. That's quite an uptick over previous years when we averaged less than 50.
So much of the conversation in the industry right now is about placing medical services out into the community to be more convenient and cost effective for patients. But what is that community going to look like in 10 years? 20 years? Flexibility becomes the name of the game.
There are currently about 600 medical office projects under way across the country. More than 15 percent of those projects include orthopedics. Why do so many projects include this specialty?
Healthcare Real Estate Insights and Revista have partnered to create the healthcare real estate industry's most comprehensive survey of outpatient medical construction activity.
The overall construction pipeline, comprised of Hospitals and Outpatient MOBs under construction and in late planning, stands at $104.4B..
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.
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.