Is MOB Construction Slowing?
Past and Projected MOB SF Delivered by Year Past and Projected MOB SF Started by Year
Every year we have seen an increase in the amount of medical office inventory being delivered to the market. In 2016, 17.7 million square feet of outpatient space opened – up 15% from the year prior. 22.6 million square feet is scheduled to be delivered in 2017, although from previous years we’ve seen the total reduced after verification since many projects both opening and starting are delayed for one reason or another. Project starts, on the other hand, are not increasing. In fact on an annual basis there is somewhat of a slowing. Verified started projects were down 18% in 2016 from 2015. 2017, at 18.9 million projected to break ground, has the potential to be at the same level or lower than 2016. This will likely show up in delivery totals in the coming year or two. Is this reflective of rising caution among providers related to changes to the ACA and/or potential implementation of the AHCA under Trump? We’ll be keeping an eye on this trend as the year progresses. Want to check out construction activity in YOUR market? Contact us to find out more about subscribing to Revista!