Construction Slows in 1Q23
With 23.4M for MOBs and 27.7M for hospitals, both are falling off the highs seen in 2022.
Construction/Development
Rehab Hospital Projects Maintain Strong Pipeline
Despite economic headwinds, rehabilitation hospitals have seen escalated development over the past couple of years. The chart below focuses on the scope of projects that started construction each year. We …
MOB Construction Off Recent Highs in 4Q
After a several year upward trend in new medical office construction starts, 4Q22 will see a slight tick down in the annual run rate. In 2022, 24.7 million square feet …
Construction Starts have Remained Strong in Select Markets
If we look at construction starts over the past year, we can see that a handful of markets have remained very strong despite increasing market headwinds. At a national level, annualized construction starts have been stable throughout 2022, hovering around 26 million square feet.
3Q MOB Construction Pipeline Hits 51 million SF as Opens Remain Low
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 …
San Jose & Las Vegas Top Markets for MOB Rent Growth
With continuing record inflation, the ability to raise rents is top of mind for many commercial real estate investors. One might be tempted to think that areas where overall inflation …
MOB Construction Outlook
With the cost of construction materials continuing to rise, and interest rate hikes on the horizon, how will new MOB developments be affected?
New Hospital Construction Picks Up
The construction pipeline of new and replacement hospital projects has been steadily increasing over the past two years. As of the second quarter, 45 million square feet of new hospital …
Strong Absorption in 1Q Pushes Occupancy Higher
2022 certainly kicked off at high speed with almost 3 times the space delivered being absorbed in the quarter. 4.3 million square feet of space was absorbed/newly occupied and 1.4
Chicago MOB Market Building into Growth
The Chicago Metro Medical Office Building (MOB) market has been rising on lower levels of completions and strong absorption all throughout the pandemic. Its occupancy rate is currently 92.4% (4Q21) …
MOB Sales Were Strong in 3Q; Sector Continues to Perform Well
During Revista’s recent 3Q webcast, Principal Mike Hargrave data showing that the volume in the third quarter was, preliminarily, $4.6 billion, the second highest quarterly total – behind the $4.9 billion of sales in Q2 2017 — since Revista began tracking such data in 2015.
Top Ten Markets for MOB Construction
A significant portion of outpatient construction has been concentrated in top markets in recent quarters. As of 3Q21, 15.3 million square feet, or 32% of the entire US pipeline of medical office construction was located in just 10 metros.
7 New Hospitals Open in 3Q21
Although hospital construction has certainly been affected by the pandemic, most of that impact has been on the expansion of existing hospitals, not the construction of brand new ones. As …
MOB Project Delays Temper Deliveries, Starts Steady
MOB project completions continue to slow in 2Q, down to 17 million square feet in annual deliveries. This is the lowest pace of deliveries in the last 6 years and represents a 32% decrease from the annual run rate of 25.1 million SF in deliveries in 1Q2020- just before the onset of COVID and all the related shutdowns, restrictions and labor shortages.
MOB Construction Starts Strong Despite Rising Costs
We\’ve all been hearing about the significant uptick in materials and labor costs associated with construction over the last number of months, particularly lumber which has been the focus of …
MOB construction completions fall to multi-year low
MOB Construction Completions fall to Multi-Year Low Medical Office (MOB) construction completions, which were near peak levels just one year ago have fallen to multi-year lows as of the 1st …
Revista Developer Survey shows strong development numbers; it also ranked the top third-party developers in 2020
While the amount of outpatient facilities started or completed during 2020 fell by about 9.7 percent from the previous year, the number of healthcare real estate projects taking place remains quite healthy
Secondary Markets Less Affected during Pandemic
The medical office building sector has held up remarkably well during the COVID-19 pandemic and continues to be an attractive asset class to investors for it’s resilience. Occupancy has remained …