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Home / Construction/Development / Will Outpatient Growth Come from On or Off Campus In 2018?

Will Outpatient Growth Come from On or Off Campus In 2018?

November 19, 2017 by Mike Hargrave Topics: Construction/Development, Industry News

The Revista mid-year 2017 construction report says to expect 20.9 million square feet (SF) of MOB deliveries in 2018, which would be a rise of 10% over 2016’s 19.0 MSF delivered.  And overall, 64% of the MOB expected deliveries in 2018 are expected to be off campus.  That is up from 54% observed in 2014.  So, its safe to say that more and more MOB deliveries are moving off campus compared to on campus.  But when we look across the markets, we see differences emerge.

The map below displays 2018 expected MOB deliveries in SF, cross tabbed by on or off campus and by metro.  Only metros where 100,000 SF or more is displayed.  Generally, you can see that the south and west favor more off campus deliveries in 2018 while some markets in the northeast and mid-west favor on campus deliveries.  For instance, New York metro is expecting 1.8 MSF to be delivered in 2018. 62% of these expected delivered are on campus.  Atlanta metro is expecting 1.5 MSF to be delivered in 2018 and 80% of those deliveries will be off campus.  And Chicago is expecting 715,000 SF of MOB deliveries, 100% of which will be off campus.

outpatient growth

 

 

 

 

 

 

 

 

 

 

Mike Hargrave
Mike Hargrave

Other Articles by Mike Hargrave:

    • TTM MOB Cap Rate Trends Showing a 20-30 Basis Points (bps) Sequential Rise
    • Lenders to the Medical Office Sector Signaling Caution, Lower Volumes
    • Inflationary Pressures Impacting the Revista MOB Industry Fundamentals Report

Previous Post:2017: The Year of the MOB Portfolio Deal?
Next Post:Medical Real Estate Transaction Activity at Record Levels , Will it Continue?

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