If you have been staying up to date with Revista’s most recent construction data, you know that over the past few quarters, construction has been down across the board. However, the magnitude of the depression may depend on the characteristics of the project. The chart below breaks up the medical office construction trend based on whether the project is on the campus of a hospital and whether it is affiliated with a hospital or health system. The third trend stands out among the three. The first two show moderate deviations from the average, much in line with the lows seen over the past 8 years. The decrease in construction for affiliated, off campus properties is exaggerated in comparison. It seems that current conditions are causing health systems to lean away from off campus developments. This trend may continue to develop, or prove to be an anomaly in the data, so stay tuned as we continue to monitor.
