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 construction is in progress. That is the highest the pipeline has been since Revista began tracking in 2015 and up 57% from where the pipeline was in 2Q 2020. Of the 163 new hospital projects that are under way, 30 are Micro-hospitals – the relatively recent trend of putting up smaller hospitals (less than 25 beds) out in the community to give more access to care and increase market share for hospital systems. The rest though, are full size and full-service hospitals with an average of 134 beds. These new hospitals are significant in that they generate a demand for outpatient services and space within their vicinity when they open. This can be a big opportunity for nearby existing medical office buildings and outpatient developers to meet this demand. Want to see where new hospitals will be opening in your market? Subscribe to Revista!
