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Follow on Google News |  2022 | Second-Half Houston Healthcare Market ReportBy: Colliers | Houston
Houston Highlights Houston's medical office building (MOB) market posted 222,852 square feet of positive net absorption in the second half of 2022, bringing the year-end total to 867,341 square feet. The vacancy rate fell over the year from 12.3% to 11.9%. Houston's MOB inventory increased annually, adding 784,270 square feet of new inventory. There is 2.7 million SF of MOB space under construction. The average asking NNN rental rate rose annually from $23.30 per SF in Q4 2021 to $23.93 per SF in Q4 2022. Transaction volume increased on an annual basis. According to our data provider Revista, the 2022 total transaction volume is just over $1.24 billion and the average CAP rate is 4.92%. Executive Summary Commentary by Beth Young, CCIM, LEED AP The evidence for the 2022 Houston healthcare market revealed a strong desire by investors for quality medical office buildings even though the fourth quarter presented a distinct reduction in transaction volume and an increase in interest rates. The year produced 51 medical office building (MOB) sales transactions, with 17 properties located oncampus and 34 off-campus for a total of 3,099,797 square feet. The transaction volume was up 194.8% for a value of $1.242 billion, heavily influenced by the 17 transactions (both on- and off-campus) in the Houston market that was part of the Healthcare Realty Trust (HR)/Healthcare Trust of America (HTA) deal which closed in August. Over the last trailing twelve months (TTM) ending January 31, 2023, transactions averaged $407.33 per SF compared to approximately $375.00/SF in 2021. The REITs' transactions also influenced the cap rates, which fell to an average of 4.9% (dropping from 6.25% in the first six months of 2022). Read the full article here: https://www.colliers.com/ End
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