As the first quarter of 2023 comes to a close, lets take a look at construction activity. Keep in mind that these numbers are preliminary and will likely have revisions in the weeks following the quarter’s closing. The graph below shows the square feet of construction starts on an annual basis. We can see that the amount of starts has stepped down in 1Q2023. With 23.4M for MOBs and 27.7M for hospitals, both are falling off the highs seen in 2022. Considering that 2022 contained the highest construction levels Revista has recorded, it wouldn’t be surprising for a period of lower levels to follow. The downward move does seem to be at a relatively quick pace, due to the lack of activity in the current quarter. This retraction is likely exacerbated by the rising cost of capital, so stay tuned throughout 2023 as we continue to observe how economic uncertainty influences the decisions of players in the market.