2021 | Year-End Houston Healthcare Market Report

HOUSTON - Feb. 24, 2022 - PRLog -- Key Takeaways

• Vacancy decreased annually and quarterly
• Year-end absorption is positive
• Construction and deliveries are up year over year
• Rental rates rose quarterly and annually
 

Houston Highlights

Houston's medical office building (MOB) market posted 869,962 square feet of positive net absorption in Q4 2021, bringing the year-end total to 859,192 square feet. The vacancy rate fell over the year from 12.9% to 12.1%. Houston's MOB inventory increased slightly with 471,245 square feet of new inventory added in the second half of 2021 and there is 2.4 million SF of MOB space under construction. The average asking NNN rental rate rose annually from $22.97 per SF to $23.29 per SF. Transaction volume decreased on an annual and quarterly basis. According to our data provider Revista, 2021 year-end transaction volume is just over $369.5 million and the average CAP rate is 6.59%.

Executive Summary

Commentary by Beth Young, CCIM, LEED AP | Senior Vice President

The pandemic emphasized many reasons why so many investors and lenders are chasing healthcare real estate. People showed up to their doctors' offices even when they couldn't go anywhere else. Conditions like stable tenants with strong-credit, good locations with high visibility, demographic drivers that heighten consumer demand, and... To read the full report, visit here: https://www.colliers.com/en/research/houston/2021-houston...