2021 | Mid-Year Houston Healthcare Market Report

HOUSTON - Aug. 12, 2021 - PRLog -- Key Takeaways

• Vacancy increased annually, but dropped quarterly
• Year-to-date absorption is positive
• Construction and deliveries are down year over year
• Rental rates rose quarterly and annually

Houston Highlights

Houston's medical office building (MOB) market posted 209,900 square feet of positive net absorption in Q2 2021, bringing the year-to-date total to 137,800 square feet. The vacancy rate rose over the year from 11.3% to 12.1%. Houston's MOB inventory increased slightly with 126,300 square feet of new inventory added in the first half of 2021 and there is 1.9 million SF of MOB space under construction. The average asking NNN rental rate rose annually from $22.22 per SF to $22.68 per SF. Transaction volume decreased on an annual and quarterly basis. According to our data provider Revista, 2021 year-to-date transaction volume is just over $96.4 million and the average CAP rate is 6.65%.

Executive Summary

Commentary by Coy Davidson | Senior Vice President

The Healthcare market is very fluid in 2021 after weathering the brunt of the COVID-19 pandemic in 2020. The Houston healthcare real estate sector is supported by... To read the full report, click here: https://www.colliers.com/en/research/houston/2021-houston...