Expanding demographics and job growth led to elevated MOB leasing activity over the last four years. The Houston market absorbed 605,000 sq. ft. of medical office space in 2016.
After a strong development cycle, the MOB pipeline will likely see a cooling in on-campus and campus adjacent projects. However, there is 1.3 million sq. ft. of medical office product in the pipeline.
Additionally, there is approximately 700,000 sq. ft. of proposed projects consisting of small, independent professional buildings.
Houston’s health systems serve as important barometers for overall healthcare industry sentiment and MOB demand levels as campus activity will remain an important indicator for near-term investment and overall confidence.