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Home / Construction/Development / MOB Construction Outlook

MOB Construction Outlook

June 23, 2022 by Stephen Lindsey Topics: Construction/Development, Industry News, Transactions

With the cost of construction materials continuing to rise, and interest rate hikes on the horizon, how will new MOB developments be affected? As the second quarter of 2022 is coming to a close, MOB construction starts have held relatively steady with over 20 million SF having been started in the past year. This high number is still being held up by the strong finish in 2021, but with over 4 million SF started in this quarter, growth remains solid.

Top 125 Metros

Let’s now take a look at our largest markets. Together, these markets have started 9.53 million SF of construction in the past year. We can see that Miami and St. Louis both have construction starts over 4% of their current inventory. New York and Houston are leading on a SF foot basis, with both clearing 1.2 million SF. As the year goes on, we will continue to monitor how the market is reacting to the unique economic conditions resulting from the pandemic. 

MOB SF Started TTM
Stephen Lindsey
Stephen Lindsey

Other Articles by Stephen Lindsey:

    • Construction Slows in 1Q23
    • Alternative Asset Sales Activity
    • Rehab Hospital Projects Maintain Strong Pipeline

Previous Post:Physician Services PPI Not Following Inflation….yet
Next Post:The Impact of Interest Rates on Medical Real Estate

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