2019 | Year-End Houston Healthcare Market Report

HOUSTON - Feb. 18, 2020 - PRLog -- Healthcare Trends

Commentary by  Beth H. Young, CCIM, LEED AP

Houston's healthcare real estate market recorded another year of growth and interest from tenants, investors and developers of medical-use properties. Increasing demand for healthcare properties is brought on by aging demographics. Some of the fastest-growing types of medical properties in Houston include hospitals, medical office buildings (MOBs), surgery centers, imaging centers, urgent care facilities, rehabilitation facilities, behavioral facilities and assisted living properties. With a gain in new medical office building inventory, the total vacancy rate increased from 13.3% in December 2018 to 15.0% in December 2019. However, increased vacant space did not keep gross rental rates down. The average rental rate increased during that time from $24.09 per square foot ("SF") to $24.57/SF. Sublease rents increased even more, from $25.08/SF to $30.75/SF. The regional population growth is estimated at 7,500 people per month, providing no doubt that medical space is needed and will be filled.

New MOB's

There continues to be strong demand for medical office, particularly in suburban locations, and developer activity is expected to continue for many years. The trend of off-campus medical properties (often in the suburbs) has... To read the full report, click here: https://www2.colliers.com/en/Research/Houston/2019-Houston-Year-End-Healthcare