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 quarter of 2021. According to newly released Revista data, 18.6 million square feet (MSF) of MOB space completed in the year ending 1Q21. This was down from a TTM completions level of 24.8 MSF in 1Q20. 18.6 MSF is also the lowest quarterly TTM level since there was 17.5 MSF completed in 1Q15. The lower completion levels are likely temporary and as a result of the temporary dip in TTM starts level during the height of the Covid-19 pandemic. In 2Q20 just over 21 MSF started (TTM Basis). The TTM starts level has since recovered to pre-pandemic levels so completions should tick up in successive quarters.
Stay tuned to Revista as we monitor both hospital and medical office construction across the US.