Revista has posted the 2020 Outpatient Development Report for subscribers as well as a complimentary data brief (link provided below). Development activity was strong in 2019. Overall, 53.3 million square feet (MSF) of outpatient real estate was started or completed in 2019. The overall market share of activity (based on total SF) for developers rose from 26% in 2018 to 32% in 2019.
What is driving the increased development activity?
Outpatient Starts rose significantly in 2019. See table below but 30.9 MSF was started in 2019 compared to 23.1 MSF in 2018 (an increase of 34%). Developers also gained a higher share of the starts activity in 2019. They were responsible for 11.0 MSF, or 36% of the overall outpatient starts activity in 2019.
Outpatient Starts 2015-2019
US Federal Properties landed the “top developer” spot in 2019. US Federal started construction on 4 large VA Outpatient MOBs comprising a total of 737,000 SF. View an article on these projects here.
Hammes Company landed the #2 spot in this year’s rankings with 9 projects and 693,600 SF started or completed. Among Hammes’ projects was the 34,000 Children’s Hospital of Wisconsin Kenosha clinic (pictured). The greater Milwaukee clinic was completed in early 2019 and provides primary care, urgent care and other pediatric specialties.
Nexcore claimed the 3rd spot in this year’s rankings. Nexcore lead in the outpatient completions category with over 400,000 SF completed, according to the report.
Congratulations to all of the developers that gained business in 2019! Revista sends thanks to all of the companies that submitted data as well as Healthcare Real Estate Insights for their guidance in producing the report.
Oh, and here is the link to download the data brief.