2019 | Year-End Houston Healthcare Market Report

HOUSTON - Rezul -- 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.

More on Rezul News

• ReedSmith® Creates Founder-Investor Connections at The Investor Dating Game™ by Tech Coast Venture Network During LA Tech Week
• OfficeSpaces.co Expands Its AI-Powered Website Builder Across North America
• Tobu Railway Group Will Host the Fourth Annual "Take-Akari" Bamboo Lantern Festival in East Tokyo, November 7, 2025 – January 31, 2026
• New Article by Roy J. Meidinger – Examines Hidden Hidden Healthcare Kickbacks
• Why Generic Platforms Fail in Emerging Markets: Bettorify Exposes the Gap Between Promise and Reality

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