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Home / Construction/Development / 3Q MOB Construction Pipeline Hits 51 million SF as Opens Remain Low

3Q MOB Construction Pipeline Hits 51 million SF as Opens Remain Low

September 29, 2022 by Hilda Martin Topics: Construction/Development, Leasing/Property Management

Medical office construction dynamics continue to show the effects of delays related to labor and supply shortages. Another quarter of lower than usual deliveries resulted in the under-construction pipeline growing to over 51 million square feet. New project starts in the quarter remained strong although the annual run rate dropped slightly to 26.5 million square feet. Construction trends tend to react to market pressures a little more slowly since lead time is so long, but economic volatility and rising interest rates is sure to make an impact on project starts in the coming quarters. In the meantime, we have a lot of inventory that will soon deliver and, depending on the market, may have some impact on fundamentals. Generally speaking, demand for medical office space has been high with absorption outpacing new supply. This translates into continued strong occupancy for existing buildings. Stay tuned to see more trends that show how the space has been faring!

Hilda Martin
Hilda Martin

Other Articles by Hilda Martin:

    • Hospital Performance Impacts Outpatient Occupancy & Rent
    • MOB On Campus or Community Based? Opinions Differ by Owner Type.
    • New Reports Available – Pivotal x Revista

Previous Post:*NEW* Hospital Market Share Report
Next Post:MOB Transaction Prices

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