• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
  • Blog
  • Free Resources
RevistaMed

RevistaMed

  • About
    • Meet Revista
    • Advisory Board
    • Partners
    • Press
    • Rising Leaders Council
    • Sponsorship
    • Contact Us
  • Events
  • Why Subscribe?
    • Featured Products
    • Business Development
    • Underwriting & Due Diligence
    • Asset Management
    • Capital Markets
    • Site Selection & Development
    • Leasing
  • Subscriber Login
Home / Revista News / Third Party Development Trending Up

Third Party Development Trending Up

January 28, 2021 by Hilda Martin Topics: Revista News

In the past, the lion’s share of MOB development has been self developed by the hospital system or provider. In fact historically, third party development has only represented around a quarter of medical office square feet started. Since 2019, we’ve been seeing a shift in this dynamic with more and more projects moving forward with a developer/investor driving the project. In 2019 third party development made up 38% of the MOB square feet started and then in 2020 that figure increase to 44%. You see some familiar names on the list breaking ground in 2020 – Nexcore, Catalyst, Rendina – all starting multiple projects in 2020. But a significant portion of that 44% is actually represented by local developers that don’t necessarily specialize in medical developments. Many as part of a larger project involving residential, retail, regular office and other uses. In general though, this shift suggests an increasing openness to leasing rather than owning by systems and providers, at least when it comes new development.

Geography certainly plays a role in how much of new development activity is self developed. In New York City and Chicago, much less is third party, last year 22% and 33% of starts respectively. In southern Florida though, the mix is exactly opposite. In Miami, almost 100% of projects started in 2020 were third party developed. It’s a similar story in Detroit, Phoenix and Seattle with all three being 80%+ third party. Stay tuned for updates on this and other trends in 2021!

Hilda Martin
Hilda Martin

Other Articles by Hilda Martin:

    • Strong Fundamentals in Florida Markets
    • Medical Office Rent Growth Accelerates
    • MOB Transaction Volume Cools in 4Q, Cap Rates Creep Up

Previous Post:Despite the Pandemic’s Effect, Healthcare Developers are Busy and Optimistic
Next Post:Kaiser Remains on top of Largest Property Owners

Sidebar

Topics

  • Construction/Development
  • Industry News
  • Leasing/Property Management
  • Mergers/Acquisitions
  • Policy/Legislation
  • Real Estate Financing/Capital Markets
  • Revista Best Practices
  • Revista News
  • Sponsor Spotlight
  • Transactions
  • Uncategorized

Recent Posts

  • Construction Slows in 1Q23
  • Strong Fundamentals in Florida Markets
  • Medical Office Rent Growth Accelerates
  • Alternative Asset Sales Activity
  • MOB Transaction Volume Cools in 4Q, Cap Rates Creep Up

Archives

Upcoming Events

  • There are no upcoming events.

Other Free Resources

Industry Directory

Search for and/or list your medical real estate services in Revista’s medical real estate directory.

Reports & White Papers

Download free reports & white papers on medical real estate.

Add Lease/Sale Listing

Revista provides free lease/sale listings for healthcare real estate.

Ready to Schedule a Demo?

Get in Touch Now
  • Why Subscribe?
  • Events
  • The MOB Scene
  • Add A Directory Listing
  • Add Lease/Sale Listing
  • Contact Us
  • Sponsorship
  • About
  • Terms of Use
  • Press

SIGN UP FOR MOB SCENE NEWSLETTER

  • Twitter
  • Facebook
  • LinkedIn