2020 | Year-End Houston Healthcare Market Report
Houston healthcare real estate market holds steady during COVID-19
Commentary by Beth Young, CCIM, LEED AP | Senior Vice President
2020 was a rough year for healthcare, but the medical office market reacted quickly and adjusted to the unusual challenges, demonstrating another reason why it has become such a strong sector in commercial real estate.
Houston medical-office building (MOB) vacancies were at 16% EOY-2020 vs 15.2% EOY-2019 for Houston MOB vacancies. Yes, vacancy appears to have ticked up 0.8% for medical space, but the surprise is that during that time, nine (9) new MOBs came on the market for a total of 372,956 new square feet (SF), according to Revista, a national database/website dedicated to medical properties. Absorption outpaced new development deliveries, with four buildings completed in the first half totaling 163,656 square feet, and five more in the second half totaling 209,300 square feet. There were 1,387,016 SF under construction at year end. Although tenants still planned relocations, COVID-19 delayed some tenants from moving in on their planned dates.
Landlords reported that... To read the full report, click here: https://www2.colliers.com/
Lisa Bridges | Director of Market Research