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2019 | Year-End Houston Healthcare Market Report

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Houston's healthcare real estate market recorded another year of growth

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.

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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

Lisa Bridges | Director of Market Research

Source: Colliers International | Houston
Filed Under: Real Estate

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